2. The greatest benefit for a landlord is that green
leases attract higher-quality tenants.
3. There is a clearly defined movement toward
corporate sustainability through green initiatives.
Green initiatives have the ability to lower
operating costs for both landlords and tenants.
The greatest benefit for a landlord is that green
leases have the ability to attract higher-quality
tenants. Tenants are looking for the advantage of
lower utility costs and the ability to promote their
business as green.
4. Following are a few simple tips to consider when
promoting green features to attract potential
tenants:
5. There is Value in Being Green:
Consumers are demanding greener products
and companies. In fact, some tenants are willing
to pay a little more in order to lease a space that
better represents their environmental values. By
allowing tenants to take advantage of an
environmentally sound tenancy, landlords can
obtain favorable lease rates and tenancy terms.
6. Promote the Cost Savings of Green
Construction:
Another tenant benefit is that greener construction
saves them money in the long term. Green
technologies offer savings on heating
and cooling costs, and
they reduce water
consumption, which
cost tenants valuable
dollars every month. By
offering tenants a building with green technologies,
you can attract tenants by having lower consumable
costs as opposed to a structure without energy
saving technologies.
7. Closely Examine the Costs Versus the
Return of Green Technologies:
Many savvy building owners are
already seeing advantages to
green building practices. Regular
energy audits can identify
problem areas and save
landlords money. However, nobody wants to invest
large amounts of money on green energy plans and
not see a return on their investment. If the
investment is solely a benefit to the tenant.
landlords need to ask whether they can recover the
investment through improved lease rates and
tenancy retention. If not, then the value of the
improvement does not meet or exceed the cost of
making the change.
8. Property Assessed Clean Energy
(PACE) programs:
In some states, PACE programs offer landlords
an incentive to make the financial investment in
green technologies. PACE programs for
commercial properties are
typically paid through a
bond repaid by maintaining
a higher tax rate. Landlords
can see an added benefit if
the lease terms have the
tenant paying the real estate taxes.
9. There is a unique opportunity for landlords and
tenants to work together when it comes to
sustainable building infrastructure. By working
together, both parties can maximize their
returns on investment in green technologies.
The goal for all parties is essentially the
same, and that is to operate the buildings and
businesses at the maximum environmentally
sustainable level that is commercially feasible.
10. The ability to work together with tenants will
solidify a long-term mutually beneficial
relationship that has incentives for both
landlords and tenants.
