The City of Seattle recently implemented a new progressive energy efficiency policy that requires certain commercial buildings in Seattle to get a tune-up assessment every five years. The program encourages commercial buildings to run more efficiently by reducing energy and water costs, which is good for the environment and good for lowering building operating costs. We expect that most commercial landlords will try to pass through the initial cost of obtaining a building assessment to commercial tenants via common area maintenance (CAM) charges. The upside is that, in the long-term, energy and water costs are expected to decrease as the systems become more efficient.
Before commercial landlords decide to pass through any tune-up program costs to tenants, they should first analyze their leases to confirm whether they are allowed to do so. Conversely, commercial tenants should also review their leases to understand their rights, including potential savings that could be passed through.
Is a commercial lease for cannabis operations void as an illegal contract under federal law?
While a cannabis operation may be properly licensed and permitted under state marijuana laws, the federal Controlled Substances Act makes it unlawful to lease property knowing it will be used for the illegal production or distribution of controlled substances. An Arizona-based cannabis business was confronted with this very issue after an attempt by its landlord to revoke the operator's lease. Find out what the court decided in the latest post on GSB's Cannabis Business Blog.
We regularly update clients about changes in real estate law and on industry trends. This includes briefing clients on legislative proposals in the federal tax, housing and other legal areas affecting their businesses. Staying current enables you to anticipate and prevent legal problems as well as capitalize on new developments.