Measuring the Potential Impact of Green Leases in the U.S. Office Sector
This IMT report, through an analysis of current energy efficiency measures facilitated by the signing of green (or energy-aligned) leases, estimates that green leases have the potential to reduce energy consumption in U.S. office buildings by as much as 22 percent, yielding reductions in utility expenditures in commercial buildings up to $0.51 per square foot. It shows that when executed, green leases have the potential to provide the leased U.S. office market $3.3 billion in annual cost savings.
By including a handful of new or modified clauses in a traditional commercial lease, both owners and tenants can better realize the benefits of investing in energy efficiency measures. These measures, which are described in this report, contribute to higher-quality spaces for tenants, who recoup their investment through lower utility bills and improved productivity and comfort. In addition, the report explores how green lease clauses drive the creation of more valuable buildings for owners, who enjoy greater rents and lower vacancy.