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	<title>Comments on: RFP Considerations for Tenants Considering Certification Under LEED 2009 for Commercial Interiors</title>
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	<link>http://www.greenrealestatelaw.com/2010/02/rfp-considerations-for-tenants-considering-certification-under-leed-2009-for-commercial-interiors/</link>
	<description>Current issues in sustainable building law for owners, builders, and design professionals.</description>
	<lastBuildDate>Mon, 09 Aug 2010 15:56:01 +0000</lastBuildDate>
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		<title>By: Brian Anderson</title>
		<link>http://www.greenrealestatelaw.com/2010/02/rfp-considerations-for-tenants-considering-certification-under-leed-2009-for-commercial-interiors/comment-page-1/#comment-1093</link>
		<dc:creator>Brian Anderson</dc:creator>
		<pubDate>Fri, 19 Feb 2010 15:43:15 +0000</pubDate>
		<guid isPermaLink="false">http://www.greenrealestatelaw.com/?p=494#comment-1093</guid>
		<description>Thanks very much for your usual shrewd analysis.  A couple thoughts on due diligence, reps/warranties and drafting the lease.

I understand the need for the rfp and due diligence.  But due diligence isn&#039;t worth much of anything unless you get reps and warranties from the landlord.  In the context of an asset purchase, for example, even with an -as-as purchase, you get reps/warranties that the landlord has given you all the information it has.  But that&#039;s not true with an unsigned rfp or non-binding LOI.  As a tenant in this market, I would dial down the due diligence and instead just put the onus on landlord to give us some strong reps and warranties in the lease itself.  They&#039;d include reps/warranties that 1. they&#039;ve given tenant all of the documents and will continue to provide all documents/letters/notices related to such Obligations (defined term which includes any amendments to such Obligations) and 2. that they&#039;ll continue to comply with such Obligations throughout the term of the lease.  Then you deal with damages and remedies--a liquidated rent reduction and/or a self-help/rent holdback remedy and/or default.  You also try, from tenant&#039;s perspective to carve these damages out of the usual landlord hold harmless and damage limitation provisions as necessary.  Finally, the lease recitals should include a statement that tenant has invested significant resources in _________ certification or green practices, that it has made public statements to its customers, clients and shareholders regarding such practices and that it would suffer damages as a result of landlord to fulfill its Obligations, etc.

 From a practical drafting perspective, I generally disfavor substantive terms in an addendum--whether green or otherwise.  Clients will willy nilly attach them to various leases in the future, with the result that the defined terms won&#039;t line up, the definitions will become dated and the provisions will likely conflict with other lease terms.  Instead, I would put these provisions directly into the lease.  A convenient place to insert these sorts of reps/warranties is the environmental section of the lease.  The enviro section typically contain a definitions section on &quot;Environmental Law&quot;s and &quot;Hazardous Materials&quot;, and then also contain a series of reps/warranties and indemnities.  Of course, green lease provisions are not &quot;environmental&quot; per se.  However, putting it there makes common sense to many clients and is sensible from a pragmatic draftsmanship perspective.  But more importantly, the &quot;green&quot; terms we&#039;d likely need (from landlord or tenant&#039;s perspective) are very similar --definitions, reps/warranties, mutual indemnities and possible survival after term for any ongoing damages.</description>
		<content:encoded><![CDATA[<p>Thanks very much for your usual shrewd analysis.  A couple thoughts on due diligence, reps/warranties and drafting the lease.</p>
<p>I understand the need for the rfp and due diligence.  But due diligence isn&#8217;t worth much of anything unless you get reps and warranties from the landlord.  In the context of an asset purchase, for example, even with an -as-as purchase, you get reps/warranties that the landlord has given you all the information it has.  But that&#8217;s not true with an unsigned rfp or non-binding LOI.  As a tenant in this market, I would dial down the due diligence and instead just put the onus on landlord to give us some strong reps and warranties in the lease itself.  They&#8217;d include reps/warranties that 1. they&#8217;ve given tenant all of the documents and will continue to provide all documents/letters/notices related to such Obligations (defined term which includes any amendments to such Obligations) and 2. that they&#8217;ll continue to comply with such Obligations throughout the term of the lease.  Then you deal with damages and remedies&#8211;a liquidated rent reduction and/or a self-help/rent holdback remedy and/or default.  You also try, from tenant&#8217;s perspective to carve these damages out of the usual landlord hold harmless and damage limitation provisions as necessary.  Finally, the lease recitals should include a statement that tenant has invested significant resources in _________ certification or green practices, that it has made public statements to its customers, clients and shareholders regarding such practices and that it would suffer damages as a result of landlord to fulfill its Obligations, etc.</p>
<p> From a practical drafting perspective, I generally disfavor substantive terms in an addendum&#8211;whether green or otherwise.  Clients will willy nilly attach them to various leases in the future, with the result that the defined terms won&#8217;t line up, the definitions will become dated and the provisions will likely conflict with other lease terms.  Instead, I would put these provisions directly into the lease.  A convenient place to insert these sorts of reps/warranties is the environmental section of the lease.  The enviro section typically contain a definitions section on &#8220;Environmental Law&#8221;s and &#8220;Hazardous Materials&#8221;, and then also contain a series of reps/warranties and indemnities.  Of course, green lease provisions are not &#8220;environmental&#8221; per se.  However, putting it there makes common sense to many clients and is sensible from a pragmatic draftsmanship perspective.  But more importantly, the &#8220;green&#8221; terms we&#8217;d likely need (from landlord or tenant&#8217;s perspective) are very similar &#8211;definitions, reps/warranties, mutual indemnities and possible survival after term for any ongoing damages.</p>
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