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 | Jan 12, 2021
Two net-zero hotel projects could portend a new hospitality trend
Energy-intensive sector comprises 10% of all commercial real estate.
Codes and Standards | Jan 11, 2021
Zero Energy Buildings growth driven by government policy, stringent codes, technologies
Restraints include high upfront cost, and lack of universal definition and approaches.
Codes and Standards | Jan 11, 2021
HUD releases new Fair Housing Act design and construction requirements
First update of ‘safe harbors’ in 15 years provides better clarity for design and construction firms.
Codes and Standards | Jan 8, 2021
Court ruling gives UpCodes upper hand in fight over building codes database
Battle over IP property claims by ICC and other codes bodies continues.
Codes and Standards | Jan 8, 2021
Houston creates tax incentives for green stormwater elements
Businesses that install green roofs, rain gardens, permeable pavement, and rainwater harvesting are eligible.
Codes and Standards | Jan 7, 2021
Trump’s classical design aesthetic mandate for federal buildings likely to be felt for years
May limit the number of firms that could compete for contracts.
Codes and Standards | Jan 7, 2021
Workers on some of Virginia’s major construction projects sue subcontractors for wage theft
Projects include new General Assembly Building, outpatient facility at Virginia Commonwealth University.
Codes and Standards | Jan 5, 2021
EPA finalizes first major update to Lead and Copper rule
Will accelerate pace of lead service line replacement.
Codes and Standards | Jan 5, 2021
Flood risk for affordable housing expected to triple by 2050
Some communities will have 90% of their affordable housing at risk.
Codes and Standards | Jan 4, 2021
Ranks of remote workers expected to double in five years
Nearly 23% of employees will work from outside of offices.
