Launched in 2014 by the U.S. Department of Energy’s Better Buildings Alliance and the Institute for Market Transformation, Green Lease leaders sets the standard for what constitutes a green lease.
The program provides guidance in leasing practices to advance mutually beneficial landlord-tenant relationships that lead to higher-performing buildings and healthier, more sustainable communities. Participants benefit from established guidelines and free support while developing their leases, as well as peer leadership recognition and substantial energy savings when leases have been implemented. Honorees are announced annually at the Department of Energy’s Better Buildings Conference.
What is Split-incentive?
Green leases, or performance-based leases, break down the split-incentive barrier between landlords and tenants, by allowing both to benefit from investments in energy efficiency. The split-incentive is when one party benefits from the savings of energy-efficiency without having to contribute to the initial cost of investing in energy-efficiency. Green leases solve this through adding in specific language that fairly aligns the financial and environmental benefits of sustainability initiatives to both parties.
Learn more about green leasing, performance-based leasing, and key metrics by visiting our green leasing page.
Our recognition criteria aligns with EPA’s new ENERGY STAR Tenant Space recognition program.