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 | Jun 6, 2017
New York City will require construction superintendents on buildings higher than three stories
New laws focus on construction safety.
Codes and Standards | May 30, 2017
Industry Groups move toward Unified Green Building Model Code in 2018
The effort involves combining ASHRAE's Standard 189.1 with the International Green Construction Code.
Codes and Standards | May 30, 2017
OSHA suspends electronic injury, illness reporting requirement
The agency is keeping records from being publicly disclosed—for now.
Codes and Standards | May 30, 2017
Florida preparing to adjust to new building elevation requirements
New floodplain maps and state code changes loom.
Codes and Standards | May 30, 2017
Heated debate over whether Calif.’s prevailing wage requirement stymies affordable housing
There’s disagreement around how much pay regulations add to cost of projects.
Codes and Standards | May 25, 2017
Technology is influencing parking requirement codes in new developments
Uber and Lyft make it easier for urban dwellers to live without owning cars.
Codes and Standards | May 25, 2017
Better Buildings Challenge Partners on track to reduce energy usage by 20% in 10 years
More than 1,000 proven solutions are now available on DOE web site.
Codes and Standards | May 22, 2017
Affordable housing initiative drives surge in residential unit permits in New York City
New permits tripled from year-ago period.
Codes and Standards | May 22, 2017
Amid labor shortage, industry groups urge government action to boost trades
AGC says a shortage of qualified workers is limiting the economy from adding more jobs.
Codes and Standards | May 19, 2017
Spate of sinkhole incidents points to neglected infrastructure investment
Suddenly appearing caverns cause deaths, evacuations, interruption of utility services.
