The Institute for Market Transformation (IMT) and the U.S. Department of Energy’s (DOE) Better Buildings Alliance announced the 2015 Green Lease Leaders at the Better Buildings Summit in Washington, D.C. Established in 2013 with support from leading real estate practitioners, the recognition program distinguishes property owners, tenants, and brokers who are effectively using the lease as a vehicle to drive energy and water savings in commercial buildings.
The clauses ushered forward by Green Lease Leaders encourage collaboration to improve energy efficiency and align incentives, saving tenants and building owners on average up to 20 percent each month on a building’s energy and water bills. A study released by IMT last week showed that green leases could deliver nearly $3 billion in annual savings for the U.S. office sector alone.
“Because of this recognition program, brokers, landlords, and tenants now have a blueprint for writing leases that remove impediments to efficiency and align interests so landlords and tenants both benefit from improving building performance. IMT and the Better Buildings Alliance are proud to see that many of today’s Green Lease Leaders are using the lease transaction to lay the foundation for working together to boost sustainability on a major scale,” said Cliff Majersik, Executive Director for IMT.
The 2015 Green Lease Leaders are:
This year, Green Lease Leaders own or lease 415 million square feet in North American buildings, bringing the grand total to over 800 million square feet of commercial space since the creation of the program. This year’s leaders also represent nearly every major property type, including offices, retail space, and manufacturing sites.
Those selected for Green Lease Leader designation use lease clauses that improve sustainability on several key fronts such as allowing for sharing of the costs of energy-saving improvements, ensuring spaces are built out to green or energy-efficient standards, and increasing transparency by obtaining and sharing access to energy consumption data and ENERGY STAR scores between tenants and landlords—a factor that will assist the growing number of buildings that must comply with energy benchmarking and transparency laws around the U.S. and abroad.
“As a contractual arrangement, the lease is a powerful tool to help landlords and tenants increase building energy efficiency. The Green Lease Leaders recognized today are redefining the role that leasing space can contribute to the triple bottom line and setting a standard for the industry,” said Kristen Taddonio, Manager of DOE’s Better Buildings Alliance.