Georgina Muskett writes for Property Week on the conundrum of green leasing

Despite the somewhat muted outcome of COP30 in Brazil recently, environmental, social and governance (ESG) remains high on the agenda for investors and occupiers of commercial property in England.

There is ever-growing demand for energy-efficient and net zero buildings, and green leasing is increasingly becoming an expectation rather than mere aspiration.

Georgina Muskett, Senior Associate in our Real Estate Disputes team, unpicks the subject of green leases in an article for Property Week.

Negotiating green lease clauses, Georgina explains, is relatively straightforward for vacant properties on the open market. However, there are challenges when trying to update leases that enjoy the protection of the Landlord and Tenant Act 1954. She explains:

The onus is on the party seeking to make any amendments to the renewal lease to show that they are reasonable in all of the circumstances. The fact that something has become market standard is only one factor for the court to take into account. Courts have a wide discretion and are generally reluctant to impose onerous obligations on tenants, particularly where their interests are short term compared with that of the landlord.

Georgina then looks at recent county court decisions have looked at clauses relating to Minimum Energy Efficiency Standards (MEES) and alterations, as well as alternative issues that can crop up in relation to green leases.

Read the full article in Property Week here.