A lease renewal presents a great opportunity to respond to the changing needs of an organisation, evolving technology and approaches to environmental performance. Whilst a traditional lease usually prohibits change with inflexible terms, a best practice or green lease ensures tenant and landlords are on the same page when it comes to sustainability outcomes.
Key projects – the BBP Leasing Standard
Launched in September 2016, the BBP Leasing Standard sets an ideal framework for ongoing collaboration and accountability. The standard helps classify a lease as ‘green’ and is the basis of a bronze, silver or gold rating. This rating ensures organisations committed to collaboration and sustainability outcomes through commercial leasing can be recognised. The principles of the Leasing Standard can be applied with the use of precedent lease templates, executed leases or memoranda of understanding signed after the lease is executed.
The BBP Leasing Standard project provides a recognisable and easy-to-understand system for the industry to differentiate best practice. Associated tools (see below) include a lease score and compliance logo to help promote a commitment to the core topics of green leasing and collaboration between tenants and landlords.
Key resource – the BBP Lease Scoring Tool
The BBP Lease Scoring Tool allows organisations to score their approach to better leasing on a scale: recognising the presence, actions and commitments of topics identified as industry best practice. On completion, the organisation is delivered a scorecard displaying the level of their work, ranging from compliant (<25%) all the way through to a silver (>50%) or gold (>75%) badge. Organisation are able to utilise the relevant logo mark across advertising, reports and surveys as evidence of their commitments to better leasing.
The scoring of lease frameworks is not a certification. It is a self-assessment of an organisation’s willingness to collaborate, take action and commit on industry-endorsed topics. Visit the BBP Lease Scoring Tool.
Key resource – BBP Leasing Standard Template Clauses
BBP Leasing Standard Template Clauses are a comprehensive set of template clauses designed to be easily built into lease documents and are aligned with the BBP Leasing Standard. The templates cover all twenty of the BBP Leasing Standard topics.
These model lease clauses have been identified through extensive industry consultation and were drafted by Sparke Helmore Lawyers and Mills Oakley, from a neutral point that does not provide advantage to either landlord or tenant, to enable owners and tenants to engage on issues that support performance improvements over time. Visit the BBP Leasing Standard Template Clauses resource page.
Other associated leasing tools
The BBP Leasing Standard MOU template should be used by landlords and tenants when negotiating the inclusion of “green clauses” that are not present in a current lease. The template comes populated with the 5 core topics of the BBP Leasing Standard. In addition, parties are able to add whichever BBP Leasing Standard topics and clauses they choose.
The Banksia Award-winning BBP leasing lifecycle tool provides a central hub for the most relevant expertise and resources available and builds the business case for leasing in high performing buildings. The tool considers the whole of occupation, not just the deal itself and incorporates a range of tools to enable each stage of the process, and to support each stakeholder to communicate intentions effectively with the others. The tool includes templates to guide specifications for better quality office space and to compare the performance of two similar spaces right through to resources to assist with fit out, make good and more.
The BBP partnered with The Fifth Estate on the popular tenants and landlords guide to happiness – an extensive nine part eBook that brought this leasing lifecycle process to life with human stories. It showcases real life examples where shared intentions have assisted tenants and owners to collaborate and achieve better outcomes, productivity and amenity.
The leasing index study is a global first. Undertaken by the BBP in 2014 it analysed a representative sample of Sydney CBD leases and found that inclusion of best practice clauses in leases is growing, indeed it has doubled since the BBP began its work in this space. At the end of FY 2013-14, 61% of all leases signed in the past two years included best practice leasing clauses. Over 80% of leases in prime-grade buildings include them, with the average prime-grade lease including half of the BBP’s model lease clause topics.