Green Lease: 10 Reasons to pursue one

“Many corporate tenants have heard about green leases, and almost as many might wonder whether they should consider one.

The answer, for a variety of reasons, is an overwhelming ‘Yes!’

It is a real-estate opportunity that truly benefits everyone: tenants, landlords and not least, the environment.

“Quite simply, a green lease is an arrangement that offers substantial benefits – both quantitative and qualitative – to both tenants and building owners/landlords by:
• Improving environmental performance of the leased space by securing a few critical commitments ….
• Aligning financial incentives so that both parties benefit from adopting green measures; and
• Improving environmental data reporting transparency to enable tenants and landlords to measure success against agreed-upon goals. “

A green lease need not be complicated. Often, it merely requires structuring terms and agreements already in place,…

Here are 10 good reasons to pursue a green lease:

  1. Reduce utility consumption and save money
  2. Improve the working relationship with your landlord
  3. Support corporate sustainability objectives
  4. Enhance your corporate/brand image
  5. Demonstrate vision and leadership within your industry
  6. Improve civic relations where you lease
  7. Help NABERSNZ, and other certification efforts
  8. Improve employee productivity, recruitment and retention
  9. Waste-stream diversions might generate additional savings
  10. A green lease is good for the environment and everyone in it.

Taking the first steps.

Implementing a green lease strategy is not overwhelming, three important initial steps are:

  • Completing an in-depth green lease site assessment on a representative sampling of sites;
  • Developing benchmarked green site selection criteria and RFP language to be used consistently in acquiring new leaseholds, and renewing/renegotiating existing ones; and
  • Training your staff to understand and use best-in-class green leasing tools.

“To maximise your results, consider engaging a trusted independent advisor with expertise in both leased commercial real estate and implementing cost-saving sustainability ….

Source: GreenBuzz, 4th June 2013.