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Landlord-Tenant Energy Partnership Launches to Unlock Billions of Dollars in Energy Savings

Published: Sep 29, 2016 Finance & Real Estate | Press Release

FOR IMMEDIATE RELEASE

Contact:
Katie Weeks, IMT, 202-525-2883, x306 / katie.weeks@imt.org
Caroline Stec, RILA, 703-600-2082 / caroline.stec@rila.org
Stephanie Cegielski, ICSC, 646-728-3572 / scegielski@icsc.org

Coordinated national effort will empower commercial building landlords and tenants to improve energy efficiency in billions of square feet of leased space and reap up to $5 billion in annual energy savings.

WASHINGTON, DC (Sept. 29, 2016)—Achieving a 20 percent reduction in energy use in America’s commercial, retail, industrial, and office buildings would save $5 billion annually1. However, lack of awareness and weak demand for energy-efficient spaces is preventing thousands of companies from unlocking this potential. Recognizing this, the Institute for Market Transformation (IMT), the Retail Industry Leaders Association (RILA), and the International Council of Shopping Centers (ICSC) are launching the Landlord-Tenant Energy Partnership, a coordinated national effort to reduce energy use across billions of square feet of leased space.

“Tenants use over half the energy consumed in leased spaces across the U.S. Often this energy is wasted by inefficient operations and equipment—so much so that their combined potential energy savings could be equivalent to taking the country of Mexico off the grid,” said Adam Sledd, Director of Market Engagement at IMT.

The Landlord-Tenant Energy Partnership will build upon standards for energy-aligned leasing (or “green leasing”) practices established by IMT and the U.S. Department of Energy’s Green Lease Leaders program; improve the tenant site selection process; increase transparency of tenant utility consumption in office and retail buildings; promote adoption of energy-efficient build-out methods; and increase landlord-tenant interaction to enable energy-saving efforts throughout the course of a tenant’s lease. All of these practices position tenants and landlords to make more-informed business decisions regarding their operations and leased space.

“Energy management within leased stores continues to be a challenge for many retailers. This partnership is an opportunity to engage all relevant parties to overcome these obstacles as an industry and establish leading practices moving forward,” said Erin Hiatt, Senior Manager, Sustainability and Compliance at RILA. “Ultimately, our goal for this partnership is to help both tenants and landlords work together to unlock energy-saving and cost-saving opportunities. IMT and ICSC are natural strategic partners as we launch these efforts and we look forward to growing the program together.”

Announced at RILA’s annual Retail Sustainability & Environmental Compliance conference, the Partnership builds upon the founding organizations’ deep relationships with some of the country’s largest tenants, building owners, real estate brokers, investors, and energy service companies. It will also coordinate with the U.S. Environmental Protection Agency’s ENERGY STAR program and U.S. Department of Energy's upcoming tenant-focused initiative.

“ICSC is committed to helping its members advance an economically prosperous and environmentally sustainable future, and the Landlord-Tenant Energy Partnership will help identify cost-effective, sustainable strategies to create positive change within the entire retail real estate industry,” said Abigail Jagoda, Director, Public Policy and Best Practices, ICSC. “As part of this effort, participants will seek and encourage best practices and public policy that accelerates the industry’s ongoing energy efficiency and sustainability gains.”

How the Landlord-Tenant Energy Partnership Works

To kick off its efforts, the Partnership has established an advisory group of representatives from some of the largest companies with national real estate portfolios, including CBRE, Kimco Realty Corp., and Nike. (The current list of advisors can be found at www.landlordtenantenergypartnership.org.) In addition, on Thursday, Sept. 29, the Partnership will assist EPA convene a roundtable of experienced retailers to discuss EPA’s upcoming tenant-focused recognition program.

“As the world’s largest commercial real estate services and investment firm, CBRE sees landlord-tenant collaboration on energy efficiency as a crucial way to improve whole-building energy performance across our portfolio and to reach our corporate sustainability and carbon reduction goals,” said Lisa Colicchio, Director of Corporate Responsibility for CBRE.  "I look forward to working with IMT, RILA, and ICSC to bolster this important dynamic in the real estate sector and capture associated returns on our investments.”

“As the largest publicly traded owner of open-air shopping centers in North America, Kimco has invested heavily in sustainability initiatives,” said Will Teichman, Senior Director of Strategic Operations at Kimco Realty Corp. “Our participation in the Landlord-Tenant Energy Partnership continues our practice of partnering with leading commercial owners, NGOs, utilities, and government authorities to identify market barriers to implementing programs and policies that not only improve the efficiency of our properties but also foster closer partnerships with tenants and bring related benefits to their communities.”

Participants will receive access to expert one-on-one guidance on implementing energy efficiency in leased spaces, best-in-class resources such as model lease language and build-out specifications, insights into leading landlord-tenant issues such as data sharing efforts, and access to innovative pilot projects and business models.

“The Landlord-Tenant Energy Partnership offers a path for more businesses to tap into the many efficiency benefits that are possible with today’s advancements in technology and financing,” said Audi Banny, Associate Director of Market Engagement at IMT and former Director of Corporate Sustainability Initiatives at the Estée Lauder Companies Inc. “We look forward to working with participants to drive this collective change.”

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ABOUT IMT
The Institute for Market Transformation is a nonprofit organization that promotes energy efficiency in buildings in the United States and abroad. Through activities including technical and market research, policy and program development and deployment, and the promotion of best practices and knowledge exchange, IMT seeks to ignite greater investment in a better built environment. www.imt.org

ABOUT RILA
RILA is the trade association of the world's largest and most innovative retail companies. RILA members include more than 200 retailers, product manufacturers, and service suppliers, which together account for more than $1.5 trillion in annual sales, millions of American jobs and more than 100,000 stores, manufacturing facilities and distribution centers domestically and abroad. www.rila.org

ABOUT ICSC
Founded in 1957, ICSC is the global trade association of the shopping center industry. Its more than 70,000 members in over 100 countries include shopping center owners, developers, managers, investors, retailers, brokers, academics, and public officials. Shopping centers are integral to the social fabric of their communities by providing a central place to congregate with friends and family, discuss community matters, and participate in and encourage philanthropic endeavors. For more information about ICSC visit www.icsc.org and for the latest news from ICSC and the industry go to www.thecenterofshopping.com.


[1] U.S. Department of Energy, “Energy Efficiency in Separate Tenant Spaces – A Feasibility Study,” April 2016