We define green leasing as the integration of energy and water efficiency, emissions reduction, waste minimization and other sustainability objectives throughout the entire commercial leasing process. Green leasing dictates that building performance become transparent to all parties involved in the lease transaction. This performance includes the efficiency in which the main engineering plant operates (HVAC, plumbing, lighting, etc.), the environmental standards of building materials, as well as the effectiveness of the building operations and management programs.
Green leasing has also altered the traditional relationship between the landlord and tenant. Tenants are demanding alterations in core and shell improvements as well as demanding that landlords perform their operations and maintenance duties in specific ways. Landlords are dictating the type of materials and equipment a tenant can use in its office space as well as demanding compliance around programs such as recycling and conservation. These are rather new circumstances and ultimately a new set of processes and negotiation points are developing within commercial leasing – green leasing.
We believe that the majority of green leasing work occurs months before the tenant has selected a suitable space. In other words, green leasing is much more than the negotiation and drafting of lease language.