Draft Sustainability Addendum for BOMA Standard Form of Office Lease

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Draft Sustainability Addendum for BOMA Standard
Form of Office Lease

• Michelle A. NeumannJordan Schrader Ramis
  PC503.598.5585michelle.neumann_at_jordanschrader.co
  m

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BOMA National

• Why do we need a Sustainability Addendum?
• BOMA National - updated Lease Guide
• Membership inquiries
• Legislative activity

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The National BOMA Lease Guide Green Provisions

• Comprehensive
• Detailed
• Technical

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Examples from National BOMA Green Lease

• Tenant shall use "proven" energy and carbon
  reduction measures
• Janitorial service during normal business hours
• Accredited professional for TI work and
  alterations
• LEED-CI for TI work and alterations
• Proposes detailed specifications for contractors
  (IAQ, janitorial)

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Portland BOMA Sustainability Addendum

• Same concepts as Nationals Lease Guide
• Less technical
• More flexible
• Optional, stand alone

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Challenges

• Dont impede transactions
• Lack of specific definition of green lease and
  sustainability
• Broad range of buildings to which this Addendum
  might apply - age, size, location
• Changing legal requirements, with more to come
• 2 pages

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This is a draft!

• We want and need your feedback

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Paragraph 1 Sustainability Practices

• Broad, non-specific
• Could change from time to time
• Establishes the obligation with which Tenant must
  comply
• Allows pass-through of related costs
• Can be modified to be more specific

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Paragraph 2 Sustainable Building Operations

• Notice to Tenants so that they can comply

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Paragraph 3 Operating Expenses

• Allows costs to be passed through as operating
  expenses

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Paragraph 4 Permitted Use

• If there is a third-party green certification
  or rating for the Building, the Tenants
  activities cannot impact that certification or
  rating

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Paragraph 5 Recycling

• Perhaps most obvious and widely-implemented
  sustainable practice
• Metro - Business Recycling Requirements
• Tenant responsible for any fines related to
  non-compliance

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Paragraph 6 - Assignment and Subletting

• Allows the Landlord to withhold consent

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Paragraph 7 Maintenance and Repairs

• Puts Tenant on notice that it must comply with
  the Sustainability Practice requirements for
  maintenance or repairs

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Paragraph 8 Alterations

• No automatic approval even if the work
  satisfies Landlords Sustainability Practices

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Paragraph 9 Removal

• Disposal must be in compliance with the law and
  the Sustainability Practices
• Tenant responsible for any fines resulting from
  non-compliance

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Paragraph 10 Energy Providers

• Gives Landlord the right to change energy
  providers or to buy green or renewable energy
  even if it costs more

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Paragraph 11 Electricity Consumption

• Tenant pays for metering (if metering otherwise
  permitted) and must submit usage data to
  Landlord

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Paragraph 12 Reporting Requirements

• Landlord must comply with reporting requirements
  imposed by law regarding the energy usage of
  Building
• Need cooperation from Tenant

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Paragraph 13 TIs

• Costs related to Sustainability Practices are
  included in the costs of the TIs

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Paragraph 14 Energy Management

• Aspirational provision Tenant will use
  reasonable efforts to use the Buildings MEP
  systems efficiently
• Conform to the energy management standards of the
  Building and monitoring systems if any

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Paragraph 15 Bicycles

• Not a ban on bikes, but a statement requiring
  bikes to be stored in areas designated by Landlord

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Paragraph 16 Effect

• The legal language necessary to integrate the
  Amendment into the Lease

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Summary

• Practical
• Respond to inquiries
• Respond to legislative initiatives
• Optional
• Can be modified

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We want and need your input

• Questions?
• Concerns?
• Suggestions?
• Copies of presentation available at
  www.jordanschrader.com or by email