This is part two of a series on green leases.
In the ever-evolving landscape of real estate development, the focus on sustainability and the emergence of smart buildings have necessitated the development of the green lease. In other words, the green lease is the paperwork, but the smart building is the physical component; smart buildings help achieve green initiatives.
In our last article, Redefining leasing: The rise of the green lease, we discussed the four key elements of a green lease. In this one, we discuss the four key features of smart buildings and their associated leasing implications.
What is a smart building?
Smart buildings integrate innovative technology to enhance and manage operational efficiency, increase productivity, augment communication, and upgrade comfort for occupants. They encourage and adhere to sustainability practices, support green branding and market positioning, and can be a compelling tool for attracting and retaining tenants.
Among the different property classes in Canada, Class A downtown office buildings have been at the forefront of adopting smart improvements. While projections vary, it is anticipated that this trend will continue to revolutionize the commercial leasing industry. The global smart building market was valued at approximately US$100 billion in 2023, and is projected to grow to at least US$500 billion by 2032.
4 key features of smart buildings
Smart buildings vary in design, services and amenities, but typically contain some or all of these key elements:
BLG Beyond Leasing can help
There are a myriad of factors that must be navigated when leasing space that is powered by advanced technology, only some of which have been addressed in this article, but all of which must be considered.
BLG Beyond Leasing’s managed legal services have supported both landlords and tenants throughout the process of developing and negotiating green leases for smart buildings, with a view to ensuring that both parties enjoy the benefits without unwanted legal implications. We would be pleased to hear from you if you’d like further information; please reach out to any of the key contacts below, or contact us at the following: BeyondLeasing@blg.com.
