Objective

To provide a better leasing framework that supports and encourages information sharing and cooperation between building owners and occupants and removes barriers to implementing mutually agreed improvements over time.

Background

Points of lease renewal represent an excellent opportunity to change the approach to leases.  Unlike a traditional lease that locks out change for a decade with inflexible terms, a best practice or green lease seeks to provide a balance between certainty and the ability for owners and occupants to collaborate constructively over the term of their occupancy. A best practice lease encourages the parties to set and pursue mutually beneficial goals.

In a world where technology and environmental performance are so rapidly evolving, adopting a best practice leasing approach unlocks opportunities and enables your workplace to be part of the solution, not part of the problem.

Key projects

The BBP developed the Banksia Award winning leasing lifecycle tool, which 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 BBP model lease clauses provides a comprehensive suite of clauses to enable owners and tenants to engage on issues that support performance improvements over time. They are neutrally drafted and the strength of the clause can be individually selected, ranging from mutual intentions undertaken with reasonable endeavours to binding and actionable.

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.