The following types of green investments can be addressed through lease transactions:
- Core and Shell. A significant portion of a building’s energy performance is directly related to its core and shell. Green decisions affecting a building’s core and shell are much simpler to implement and much more economically feasible during new construction projects. The core and shell of an existing building is not easily modified without major occupant disturbance and may require considerable investments with long-term paybacks.
- Tenant Improvements. Tenants have much more control over space that they directly occupy. Potential green measures include interior lighting systems and controls, plumbing fixtures, and the use of sustainable and environmentally friendly materials throughout the interior construction. However, tenants do not have full control over the design, build out and operations of their leased facilities. In addition, their willingness to invest in any incremental costs for greening their space is often limited to those measures that can pay for themselves through reduced operating costs over the term of their lease.
- Building Operations. Designing a green building and investing in high performing engineering technology will not make a significant difference if the equipment is not used and calibrated properly. Green leases should include provisions that specify best operations and maintenance practices. For example, green lease specifications may include building commissioning, monitoring of energy and resource use, and use of environmentally friendly cleaning products.