How a green lease saves money for both tenants and landlords?

Create a mutually beneficial arrangement to save landlord and tenant money

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While a green lease may be in a corporate tenants mind it is not well enough understood why a green lease should be considered

Traditional leases don’t encourage saving energy or money

With most leases the landlord is responsible for all financial upgrades. This means neither the landlord nor the tenant has an incentive to save money. A green lease turns the one sided traditional lease into a partnership between the landlord and tenant. Tenants will put in effort to save energy when they know their efforts are going to save them money. By creating this partnership-style lease both parties benefit. Here are some good reasons why consideration of a green lease is a good idea. A green lease is an arrangement which offers mutual benefits to the tenant and the landlord. 

A green lease allows for:

  • Improved property performance based on agreed elements between tenant and landlord.
  • Joint financial returns.
  • Data driven measurement

The best green lease is a simple one. Structure terms already in place like temperature settings, building operating hours, and waste disposal. This needs to achieve sustainable cost savings while not limiting productivity and comfort. A green lease aims to achieve peak effectiveness, sustainability and cost savings for the building. Here are three good reasons to have a green lease.

Reduce consumption

Reduce your requirements for electricity, HVAC and water. Some green measures generate immediate savings but most should more than recoup their investment over timeEffective restrictions on these items alone are often enough justification for a green lease. Saving three to five percent of these costs over three or five years becomes a notable cost saving.

Improve employee productivity, recruitment, and retention.

Implementing green practices improves performance and employee retention significantly. Read the article below for more detail on this. Studies conducted suggest a potential increase in employee productivity of up to sixteen percent compared to ungreen buildings.

Read how Green buildings improve productivity

It is the right thing to do

People are often paralysed by what to do about climate change. People need practical and performance linked ways to do something about it. A green lease is one such example of how we can all start doing things that take action against the threat of a toxic environment.

First steps to consider with a green lease

  • completing an in-depth green lease site assessment
  • Develop agreed new criteria and renew/renegotiate existing ones
  • Define measurement criteria and set SMART goals
  • Establish a dedicated ‘green’ steering committee to ensure successful change management occurs.

It is advisable that you seek the expertise of a specialist when assessing the potential for an efficient and cost saving green lease. This is beneficial for both landlord and tenant respectively.


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