The General Conditions portion of the US Postal Service lease contains the following eleven sections:

  1. Choice of law
  2. Recording
  3. Mortgagee’s Agreement
  4. Assignments
  5. Applicable Codes and Ordinances
  6. Sublease
  7. Restoration and Alterations
  8. Claims and Disputes
  9. Hazardous/Toxic Conditions Clause
  10. Facilities Nondiscrimination
  11. Clauses Required to Implement Policies, Statutes, Or Executive Orders

Sections 1, 4, 5, 8, 10 and 11 are mandated by Federal Law.
Section 9, Hazardous/Toxic Conditions Clause is not federally mandated.  Therefore, postal lessors can attempt to negotiate appropriate changes to the language.  However, current USPS policy is to resist such changes.  Landlords need to read Section 9 of the General Conditions in their lease agreements in order to understand their obligations.

 

Among a landlord’s obligations under the Section are obligations to (i) identify and disclose asbestos containing building materials used in the building, (ii) remove friable asbestos and other hazardous substances on the premises, unless the necessity for removal is a result of the negligence of the USPS, and (iii) prepare an operation and maintenance plan for asbestos containing building materials found in the premises that were not originally identified and disclosed by the landlord. Landlords should assess the likelihood of liability under these provisions and consider adopting lease language or rent concessions that will help ensure that they do not end up with excess expense and/or liability that will not be compensated through the rent.