The Value of Green Leases
The commercial real estate sector, particularly the office sector, has faced many disruptions over the past few years.
With this rising demand for decarbonization, offices must utilize all tools available to meet ambitious carbon goals.
The lease is one of the critical tools that must be used to ensure both landlord and tenant are able to meet their goals and requirements while reducing risk. Green, or high-performance leases that have clauses that address ESG are a long-time tool to spur efficiency and decarbonization action at the building level. While it is the measures enabled by the lease and not the signing of the lease that result in the operational savings, the lease plays a key role to ensure measures can and will be implemented, defines the efficiency standards required for the asset, and outlines the associated roles and responsibilities of both landlord and tenant.
IMT recently conducted research to revisit the potential savings that can be unlocked by green leases.
Categories:
Lease Negotiations, Tenant Operations, Commercial Office, Landlord