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
School Construction | Mar 28, 2016
National report on school buildings reports $46 billion annual funding shortfall
Millions of students said to be learning in obsolete facilities.
Codes and Standards | Mar 25, 2016
ASHRAE grants fund human thermal comfort database project
Aim is to help better understand thermal comfort in residential and commercial buildings.
Codes and Standards | Mar 25, 2016
OSHA finalizes new silica dust regulations
Construction industry has until June 2017 to comply.
Wood | Mar 23, 2016
APA updates Engineered Wood Construction Guide
Provides recommendations on engineered wood construction systems.
Codes and Standards | Mar 23, 2016
Affordable housing advocates differ on micro-apartment policy
New York’s luxury micro units could be first step to developing affordable units.
Codes and Standards | Mar 21, 2016
GRESB launches Health and Well-being Module for real estate industry
Optional supplement to environmental, social, and governance assessment.
Codes and Standards | Mar 4, 2016
U.S. Supreme Court lets San Jose affordable housing law stand
Law attempts to alleviate Silicon Valley’s high housing costs.
Codes and Standards | Mar 2, 2016
WELL standard offers multiple benefits for owners, says real estate executive
Could be a recruiting tool for occupant companies.
Cultural Facilities | Mar 1, 2016
China bans ‘weird’ public architecture, gated communities
Directs designers of public buildings to focus on functionality.
Energy Efficiency | Feb 23, 2016
Economists, energy efficiency practitioners need to work together for better cost/benefit studies
Flawed energy efficiency research yields misleading, confusing results.
