Greening Leased Spaces: Opportunities and Challenges

Panel: Market Transformation: Taking Efficiency Mainstream

Authors:
Craig McDonald, Navigant Consulting, Inc.
Sean Ivery, Navigant Consulting, Inc.
Claire M. Gagne, Navigant Consulting, Inc.
Kif Scheuer, Strategic Energy Innovations

Abstract

In market research conducted by the authors, tenants, brokers and owners of leased commercial office space identified the following as key barriers to expanding green building within the commercial sector: first cost, split incentives, lack of common definition for green and sustainable, lease type diversity, availability of qualified properties, and lack of communication between tenants and landlords. Developed with an advisory board that included California Department of General Services, JP Morgan, Bank of America, CB Richard Ellis, Thomas Properties, Southern California Gas, and the California Energy Commission, the Green Leasing Toolkit facilitates commercial green building by providing a comprehensive solution to the challenges created by the standard commercial leasing process. Despite these barriers, leased space can be greened within current lease structures - the principle requirements are to recognize that greening space requires embedding green considerations throughout the leasing process and establishing open communication between landlord and tenant. The Toolkit integrates energy, water, waste and other sustainability goals throughout the commercial leasing process, and enables landlord and tenant to align their green building objectives.