Rising in popularity with corporate tenants and their landlords (and even municipalities like New York City and San Francisco), green leases improve the environmental performance of a leased office space, ensuring that the company occupying the space and the landlord that owns the building are operating in a sustainable manner from the inside out. This energy and cost saving tactic typically results in additional cash flow for the building by increasing its appeal to corporate tenants.
“Green leases combine the productivity, comfort and sustainability features that tenants are looking for in office space while supporting landlord priorities of improving the triple bottom line and occupancy rates,” said Michael Jordan, Executive Vice President of Sustainability Strategy for Jones Lang LaSalle (JLL), a leader in green lease administration. “In addition to achieving both tenant and landlord objectives, green leases have social, economic and environmental implications for companies operating in today’s global economy. Green leases truly are the future of commercial real estate,” he added.
Ten Reasons to Sign a Green Office Lease
Jordan and the JLL Energy and Sustainability Services team recommend that tenants and landlords collaborate to develop a green lease that benefits each party, typically including the following ten benefits:
- Reduce Utility Consumption and Save Money
- Improve Working Relationships Between Tenants and Landlords
- Support Corporate Sustainability Initiatives
- Enhance Corporate Image/Brand
- Demonstrate Vision and Thought Leadership
- Improve Civic Relations
- Contribute to LEED and Other Green Certifications
- Improve Employee Productivity, Recruitment and Retention
- Generate Additional Savings through Waste Stream Diversions
- Do the Right Thing for the Environment and its People