Green Leases
Are green leases or green lease provisions mandatory or optional? If mandatory, to whom do they apply? If optional, is there significant take up?

Green lease provisions are not mandatory in Canada. However, leases drafted by larger commercial landlords frequently include provisions requiring the tenant to comply with the landlord's policies to promote energy efficiency and/or reduce the environmental impact of the building. Given the increasing importance of LEED and related certifications in the Canadian marketplace, this is a trend that is likely to accelerate. Global companies with strong corporate social responsibility policies are also requesting the inclusion of green lease provisions, which may include the right to receive annual compliance reports from the landlord. There remains tension between landlords and tenants as to how the cost of complying with green lease provisions should be apportioned. While most leases in Canada would not be described as green, green lease provisions are becoming more common.

In 2008, the Real Property Association of Canada drafted Canada's first National Standard "Green" Office Lease for Single Building Projects, which was last updated in 2021.