A Landlord Tenant Energy Partnership
Green leases also known as aligned, high performance, or energy efficient leases align the financial and energy incentives of building owners and tenants so they can work together to save money, conserve resources, and ensure the efficient operation of buildings. A green lease is a lease of space in a green building that is designed, constructed and operated to achieve sustainability, water efficiency, energy savings and indoor environment quality.
Building Leases spell out how energy costs are divided between tenants and owners. Often, these leases are not structured in a way that promotes energy savings. Tenants have no incentive to save energy in their leased premises because energy costs are based on tenant square footage. Building owners have no incentive to invest in energy efficiency because the operating expenses are passed onto tenants.
Green Leases promote energy efficiency by creating lease structures which equitably align the costs and benefits of efficiency investments between building owners and tenants.