New kind of lease needed in green culture, consultant says

In the wake of a citywide push to make green upgrades on existing properties, more New York City landlords and property owners are wondering how they’ll afford the energy-efficient changes. Sean Neil, founder of year-old economic consultancy firm Cycle-7, said that large commercial landlords need to begin drafting new leases that take into consideration the costs — and benefits — of regular green building maintenance. His firm plans to help landlords and tenants share the financial burdens and rewards of green building enhancements through proper lease construction. One real estate attorney, Jonathan Mechanic of Fried, Frank, Harris, Shriver & Jacobson, told the New York Times that the strategy could be beneficial to landlords making environmentally conscience upgrades, particularly in the weak economy. “The way existing documents work, you probably would not in many cases have savings going to the guy who owns the more efficient equipment,” Mechanic said.