In the wake of the COVID-19 pandemic, which has frequently pitted commercial building owners and tenants against one another as the demand for commercial space has teetered, green leases have the potential to unite tenants and building owners toward a common goal of making their space more sustainable.
Green leases are commercial leases with the purpose of aligning tenant and building owner interests for energy-efficient investments. A green lease isn’t a particular type of lease, so it can be a gross or net lease. Any commercial lease can be modified to become a green lease. Every green lease is different, so there aren’t particular clauses that all green leases include.
Green leases will likely require that both parties take on additional ongoing responsibilities relating to energy efficiency. But even with the extra responsibilities and collaboration, green leases are beneficial to tenants and building owners in a variety of ways.
Green leases benefits include:
- Improve Property Value. Energy-efficiency retrofits, practices, and certifications can allow you to charge higher rents in the future.
- Reduce Operating Costs. The average building wastes about 1/3 of the energy it uses.
- Obtain Certifications. Many tenants are motivated to gain these third-party certifications for the spaces they rent to showcase corporate responsibility.
- Impress Tenants. Many companies have sustainability goals, so it’s desirable to find a building that uses environmentally-friendly practices.
- Lead the Way to a Sustainable Future. Your renovations can reduce your carbon footprint and make a difference in creating a greener, more beautiful future for everyone.
While the environmental and financial benefits of energy-efficient buildings are undisputed, property professionals need a foolproof plan to execute a lease that achieves and maintains sustainable building operations. BOMA’s Green Lease Guide provides instructions to write green operations and management practices into lease agreements, as well as legal language to facilitate the ongoing implementation of sustainable building practices. This green lease guide covers all aspects of a standard lease agreement, such as models for prime lease agreements, guaranty of the lease, and form subleases.
Green Leases are one pathway for building owners and tenants to collaborate for more sustainable existing buildings.
Building Assure has developed a solution that is designed with the small building owner in mind. Our low-cost solution provides all the necessary data to monitor energy consumption and waste, air quality, thermal comfort (temperature and humidity), water leak detection, equipment maintenance, and service quality (was the service conducted, and did it achieve the desired results). All while providing full transparency to your tenants and service contractors.
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