by Brianna Crandall — April 24, 2013—As a way to go beyond Earth Day rhetoric and reinforce a commitment to the Earth throughout the year, companies can validate their dedication to sustainability by making their office space environmentally friendly, says Jones Lang LaSalle (JLL), a global financial and professional services firm specializing in real estate, and a leader in green lease administration. Signing a “green lease” puts that commitment in writing, while typically achieving energy and cost savings, notes the firm.
Jones Lang LaSalle defines a green lease as an arrangement that offers substantial benefits—both quantitative and qualitative—to both tenants and building owners/landlords by: securing a few critical commitments from both parties to improve environmental performance; aligning financial incentives so that both parties benefit; and improving environmental data reporting transparency to enable tenants and landlords to measure success.
The firm asserts that a green lease need not be complicated. Often it merely requires structuring current terms and agreements, such as temperature settings and building operating hours, in a way that provides sustainable cost savings without negatively impacting building performance and occupant comfort.
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). “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.
As tenants and landlords continue to see value in making office space more sustainable, green leases will become the new norm, opines JLL. As with every lease, the green criteria should undergo careful evaluation to maximize effectiveness, sustainable success and cost savings. The firm recommends completing an in-depth green lease site assessment and integrating request-for-proposal (RFP) language that incorporates benchmarked green criteria applicable to both new leaseholds and renewing/renegotiating existing ones, and says that working with a knowledgeable advisor is critical.
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
In celebration of Earth Day 2013 on April 22, Jones Lang LaSalle released a white paper that goes into detail on the return on investment (ROI) associated with each of the benefits listed above. “Perspectives on Sustainable Tenant Strategies: Ten Reasons You Should Have a Green Lease” is available on the JLL Web site. Jordan also provides specifics regarding 10 benefits of having a green lease in the firm’s Green Blog.
Jones Lang LaSalle offers specialized real estate services to clients seeking increased value by owning, occupying and investing in real estate. The firm operates in 70 countries from more than 1,000 locations and employs 1,500 energy and sustainability accredited professionals in more than 30 countries with skills in facilities and property management, energy assessments, retro-commissioning, retrofits, project management, LEED and other certifications, renewable energy, sustainability consulting, workplace strategy, green lease programs and more. JLL is an ENERGY STAR Sustained Excellence Partner and a lead sponsor of the Carbon Disclosure Project (CDP) Cities program.
