Green Buildings Set New Standards

The building industry is going through an environmental awareness change, and "green" commercial buildings are popping up everywhere. For companies that believe in protecting the environment, green building standards provide a way to put this philosophy into practice. After all, commercial buildings account for 65% of U.S. electricity use, 36% of total energy use, 30% of greenhouse gas emission, and 30% of raw material use, according to the Green Building Council.

Yet some confusion exists about what "green" means. It is a complex standard that awards points for various aspects of a project, whether new or refurbished. Factors include the building site and availability of public transportation, water efficiency, indoor air quality, use of recycled materials in construction, lighting, and so on. A building can earn one of four green building ratings, "certified," "silver," "gold," or "platinum."

The certification system run by the Green Building Council is called Leadership in Energy and Environmental Design, or LEED for short. Any developer can use the LEED standards, and they are also being used by the federal government's General Services Administration that manages construction of most federal buildings, and by more than a dozen states and several dozens cities.

Green buildings can offer improved comfort for tenants as well as energy efficiency that can mean cost savings on operating expenses. While special materials and other factors may make a green building 2% to 5% more expensive to build, tax credits and deductions for energy efficiency made possible in the energy bill passed by Congress in 2005 can help defray the costs of going green. While popularity varies from market to market, we believe LEED certification will become an increasingly common factor for tenants making leasing decisions.

Landlords Can Double Dip on Subleases

Here is the tenth and final installment in our series on ways a landlord may try to "double dip" a tenant after a lease is signed.

10. Landlord taking advantage of a tenant trying to sublease its space

When you are leasing commercial real estate, it is often hard to imagine what conditions will be like five or more years down the road. Sometimes conditions change and your company might no longer need some of the space it has leased. That's when the sublease clauses in your lease can come into play, and your landlord might be in a position to take advantage of the situation.

First of all, a landlord is always going to require the right to approve subtenants. They may want to look at the credit worthiness of the subtenant, or the reputation, or the use of the subtenant, but you don't want to allow them to be arbitrary in their decision to approve or disapprove. You want to have in your lease upfront that they have to be reasonable in their approval process and restrict the criteria they can use in evaluating a potential subtenant.

For instance, the landlord should automatically approve subleases to affiliates of your company. You also want to make sure that if your company is sold, and the new entity has basically the same or greater net worth as the old entity, then approval is automatic. You don't want a landlord holding up an internal corporate transaction.

In the case of a rising market where you would be able to sublease for more than you're paying on the direct lease, make sure your lease doesn't restrict you or give the landlord all of your potential profit. Before signing a long-term lease, it may be possible to negotiate to split any future sublease profits, net of transaction costs, brokerage and legal fees.

Other ways a landlord could interfere with subleasing and cost your company money include saying that you can't sublease the space for less than current market rent. This restriction could prevent you from subleasing your space in a down market. The landlord can also try to prohibit you from subleasing to anyone who could be a direct lease tenant candidate. There are reasonable ways to limit this restriction when you negotiate your lease. Finally, landlords will often require fees to underwrite and approve a sublease, so you want to establish a cap on those fees upfront.

Basically, when negotiating a lease, tenants should make sure they have the maximum latitude for subleasing. What may seem like a minor issue during lease negotiations could have significant financial impact down the road.

Beating Workplace Burnout

In today's global economy, just about anyone can face considerable stress that can lead to burnout at some point in his or her career. Here are ways to keep your cool.

* Make time for you. Establish the personal activities that are most rewarding, such as dinner with the family or working out at the gym, and schedule them into your calendar.

* Don't dally. Postponing difficult matters is counterproductive and only worsens the anxiety factor. The best way to stay revved up is to deal with the challenges first so difficulties can be put behind you, freeing you up to focus on the more enjoyable aspects of the job.

* Plan your work. One source of stress and burnout is the inability to complete anything. Set aside blocks of time each week to focus on specific tasks such as answering e-mails, reading industry publications, or emptying the inbox, and establish clear boundaries that prevent interruptions.

* Allow some downtime. Sometimes the best way to recharge is to simply unplug. Do some stretching exercises at your desk. Read something purely for enjoyment. Take a short walk. Indulge in a nonworking lunch alone or with a close friend.

* Take your kind of vacation. For some, an afternoon off or an occasional mental health day is enough to recharge their batteries. Others need a serious break, like two weeks in a beach cottage with no outside contact. Still others might need physical challenges such as hiking or kayaking.

* Volunteer. Perhaps nothing cures burnout more than taking the focus off oneself. Time spent helping others can restore perspective and inspire a sense of fulfillment.