Leasing & Split Incentive

The 2014 Green Lease Leaders are announced.

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.

Tools & Resources

The Tower Companies Implementation Model: Leveraging Green Leases to Reduce Energy and Water Use.
The Tower Companies had limited access to energy use data and limited control over energy use and plug loads within leased space. To better work with tenants to overcome these barriers, The Tower Companies developed an included a green appendix to its standard lease agreement.

Successes in Sustainability: Landlords and Tenants Team Up to Improve Energy Efficiency
An ENERGY STAR report featuring case studies of successful commercial real estate owners, managers, and tenants who are working together to achieve maximum energy performance in their buildings.

National Resource Defense Council (NRDC) Center for Market Innovation
A guide that discusses negotiating commercial leases that enable resource efficiency and addresses the major barrier to more efficient buildings in a way that makes energy efficiency a shared objective between landlord and tenant.

Green Leases Toolkit v2.0
Established processes within the leasing industry that can be used by landlords, tenants, and small business owners who manage or occupy large portfolios of facilities or individual buildings. Developed by the California Sustainability Alliance and Navigant.

London Better Buildings Partnership (BBP) Green Lease Toolkit
A comprehensive toolkit for green leases to enable owners and occupiers to work together to reduce the environmental impact of their commercial properties.

Realities of Green Leasing- A Step-by-Step Guide for Landlords and Tenants
An article developed by CoreNet Global that discusses the realities of green leasing from consensus to ongoing measurement.