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 | May 25, 2016
LEED Dynamic is worth the effort, says commercial real estate executive
San Diego office tower is California’s first office building to receive LEED Dynamic plaque in recertification.
Codes and Standards | May 24, 2016
Ontario planning to spend $7 billion on wide-ranging climate change plan
Includes financial incentives to retrofit buildings.
Codes and Standards | May 23, 2016
Facility managers say Internet of Things, analytics will impact maintenance soon
More reliable data needed for optimal results from the technology.
Codes and Standards | May 20, 2016
Industry leaders call for wider use of bamboo as a building material
Benefits include seismic resiliency and sustainability.
Codes and Standards | May 19, 2016
Asphalt roofing group publishes updated shingle installation guide
Technical manual provides best practices for roofing professionals.
Codes and Standards | May 16, 2016
EPA proposes new stormwater discharge regulations for construction sites
Would apply to sites of one or more acres.
Roofing | May 16, 2016
New guide focused on increasing energy and structural performance with raised-heel trusses
Higher trusses simplify attic ventilation, leave more space for insulation.
Codes and Standards | May 11, 2016
Current California seismic codes provide safety, resiliency, but needed upgrades present challenge
Los Angeles requires seismic retrofits, but other cities do not.
Codes and Standards | May 10, 2016
Apple spars with Cupertino, Calif., mayor over strained city infrastructure
Apple’s new ‘spaceship’ campus project prompts questions about whether the company should pay more to offset traffic woes.
Codes and Standards | May 9, 2016
Safety Stand-Down yields proposals to boost construction safety
One example: Gilbane encourages safety harnesses for all working above 6 feet.
