Rising in popularity among corporate tenants, green leases are a true real-estate opportunity for landlords, and a promise to the environment.
You might have heard of green leases and wondered if you should consider signing one. The answer is yes and the reasons why might surprise you.
What is a green lease? First introduced in the UK and Australia in 2006, green leases are an opportunity to fight climate change while also making profit. It is an energy and cost saving approach that aims to improve the environmental performance of your leased office space, thus increasing its appeal to corporate tenants.
At the start of this year, the UK commercial property market saw a record activity in the London real estate market with a total of £4.9bn worth of transactions between January and March 2017. By retrofitting your commercial property, you will not only distinguish yourself from the competition, you will also show commitment to the future and set yourself apart as a forward-thinking commercial real-estate leader.
So how can a green lease benefit you and your tenants? What are the incentives of designing, constructing and managing sustainable commercial buildings?
- Your core asset is maintained in compliance with its sustainable design
- As a result, the building achieves maximum rental returns and occupancy rates
- Maintenance and operating costs are minimized and utility consumption is reduced
- Your public image is enhanced and your asset scores better on green rankings
- Waste stream diversions lead to extra savings
- Landlord-tenant relationship is strengthened:
- Show leadership in energy and environmental design by getting BREEAM certified: in accordance with the European Union’s Energy Efﬁciency Directive, the UK has a national energy efﬁciency target to reduce energy consumption by 18% in 2020. Contributing to the national target shows ambition and civic leadership.
Looking at the commercial real estate market last year, it's becoming clear that tenants value sustainability when looking to lease new office spaces. For tenants, green buildings are synonymous with efficient buildings – smart, forward-looking landlords can reap the benefits of this energy efficiency.