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Green Leases

Welcome to the Green Lease Library, a centralized resource for commercial green leasing resources

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When to Use

Use this article after you have installed your energy saving and generating equipment, otherwise depress "RETURN TO FINANCING".

What are Green Leases?

Green leases (also known as aligned leases, high performance leases, or energy efficient leases) align the financial and energy incentives of building owners and tenants to save money, conserve resources, and ensure the efficient operation of buildings.

Why are Green Leases Important?

Building leases lay out how energy costs are divided between tenants and owners, but they are often not structured to promote energy savings. Under most gross leases, for example, tenants have no incentive to save energy in their leased premises because energy costs are based on tenant square footage. Under most net leases, building owners have no incentive to invest in efficiency for their building systems because the operating expenses are passed through to tenants, who would therefore receive all of the energy cost savings. 

Pros

  • Green leases promote energy efficiency by creating lease structures which equitably align the costs and benefits of efficiency investments between building owners and tenants

Cons

  • Core business may be impacted while establishing a green lease

For more information

Please contact us by depressing this button, "ASK US HOW".

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