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Green Leasing: Managing your indoor environment

Green Leasing:  Managing your indoor environment
Filed in Healthy & Green on December 30, 2013 0 Comments

Increasingly, building owners, managers and tenants are incorporating environmental responsibility and sustainability into their building operations.  The concept of green leasing was a natural extension, and therefore has fast become part of mainstream real estate strategies.

So, what is green leasing?

With a green lease, landlords and tenants sign on the dotted line to work together to make a green building.  The property owner would typically be responsible for managing the property in a sustainable manner, while the tenant pledges to reduce energy consumption, to recycle whenever possible and to follow other green lease terms.

Some of the specific terms may include permitting the landlord to install meters to measure the tenant’s consumption of utilities, with a provision to directly charge back the tenant for any disproportionate usage. It will also invariably leave the landlord responsible for providing cleaning and garbage removal. In most cases this will permit the landlord to stipulate the use of eco-friendly cleaning products and recycling. Also, it could include a provision contemplating the reduction of waste production or require that the tenant improvements match the standards of LEED CI or equivalent.

A green lease does not need to be complicated. Often, it merely requires structuring terms and agreements already in place, such as temperature settings and building operating hours, in a fashion that provides sustainable cost savings without negatively impacting building performance and occupant comfort.

Green Leases can be developed with existing or new buildings with established tenants and leases or in expectation of tenants yet to come.

What are the benefits?

Building managers and business owners have come to understand that developing green leasing initiatives and empowering all stakeholders to take a proactive approach to employing “green initiatives” improves the environment within the building resulting in a healthier workspace with a reduced environmental footprint.

Successful green leases are designed to financially benefit tenant and landlord so that both parties have an incentive to enter into sustainable agreements. Such dialogues about mutually beneficial green-lease provisions can strengthen the overall relationship between landlord and tenant.

A green lease can also help companies meet carbon footprint reduction goals or other environmental gains. Successful green leases greatly assist these objectives as they not only generate, but enable, tenants to measure and report quantitative sustainability improvements.

Green lease sustainability.

When considering the fundamentals of Green Leasing, one must realize that this concept is not merely a trend.  Green Leasing provides for a transparent understanding between landlord and tenant and establishes a framework where all parties work toward achieving sustainability and reducing the ecological footprint of both the building and its occupants for the benefit of all concerned.

For the future, the benefits of managing your indoor environment through Green Leasing will extend to everyone as well as the environment.

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