Leasing & Split Incentive
Under most net leases, energy costs are paid directly by tenants and building owners aren’t driven to invest in efficient building systems. Conversely, in many gross leases, building owners pay energy expenses and tenants have little incentive to save energy in their leased space. This dynamic is commonly referred to as the “split incentive” barrier to energy efficiency.
The Leasing & Split Incentive team is working to identify and promote strategies to align financial and energy incentives for landlords and tenants. This includes developing resources to encourage ‘green’ or ‘energy-aligned’ leasing, educating brokers on the importance of energy efficiency in commercial real estate, and engaging tenants to undertake efficiency improvements in leased space.
Contact us to join the Leasing & Split Incentive team or for additional information.