Green leases, also called energy-aligned leases, have been gaining more adherents since they were introduced to the market about 10 years ago.
They are effective tools to ensure that both landlords and tenants benefit from energy and water efficiency building upgrades. Traditional leases tend to create disincentives for landlords and tenants to invest in more efficient systems and equipment.
For example, the financial savings from lower operating costs in a net-leased building go to the tenant while the landlord pays the capital costs for improvements. And, in buildings with a full-service lease structure, the landlord has incentive to keep energy costs down, but the tenant is not penalized for wasteful energy consumption.
Owners who have successfully implemented green lease programs have shared the costs of energy-saving improvements; ensured tenants build out to green standards; increased transparency by sharing access to energy consumption data and ENERGY STAR scores between tenants and landlords; and encouraged cooperation on environmental initiatives, such as recycling.
Related Stories
Codes and Standards | Feb 14, 2019
ISO publishes first global BIM standards
Based on British standard and a publicly available standard.
Codes and Standards | Feb 12, 2019
Property technology adoption accelerates in commercial real estate industry
New business models create disintermediation.
Codes and Standards | Feb 11, 2019
Investing in downtowns pays off for cities, regions
Benefits include driving tax revenue, business activity, and smart development.
Codes and Standards | Feb 8, 2019
Oslo, Norway’s downtown goes virtually car-free
Parking spots converted to bike lanes, transit is fast and easy.
Codes and Standards | Feb 7, 2019
New North Carolina energy code has extensive lighting control requirements
Includes automatic shut offs for buildings of all sizes.
Codes and Standards | Feb 6, 2019
Solar carports can help with California’s Title 24 mandates
Can be combined with virtual net-metering software and tax-enabled financing.
Codes and Standards | Feb 5, 2019
Milwaukee board approves rezoning for Western Hemisphere’s tallest mass timber building
Mixed-use tower would rise 21 stories high.
Codes and Standards | Feb 1, 2019
Mass. governor proposes real estate transfer fee hike for climate resiliency projects
Opposed by real estate and trade groups, plan could generate $1 billion in next decade.
Codes and Standards | Jan 31, 2019
New York City will reform construction bid process
Streamlined process intended to improve efficiency, reduce hassle for bidders.
Codes and Standards | Jan 30, 2019
New AGC program aims to diversify construction workforce
More diversity needed to keep pace with demand for workers.
