Green Lease
Overview
Below are some common terms of green lease for consideration:
• The purpose of the lease, e.g., to achieve a green environment and
improve energy performance
• The tenant is invited to join the green team. Commitments of the
green team can be listed
• Provision for information on waste audits if being practiced, e.g. visual
waste audit, waste characterisation and desktop audits. The tenant may
be required to submit information and allow entry to the premises for
audit purposes. The objectives can be listed in the lease
• The tenant may be required to attend meetings held by the green
team for reporting and reviewing purposes
• The tenant is required to agree to the installation of measuring devices
and submission of consumption records and permit entry to premises
for record purposes
• The tenant is required to adopt the relevant forms and methodology
set by the landlord/ property agent for data submission and analysis;
• The tenant is allowed to join the bulk purchasing scheme for
minimising waste. The procurement procedure and terms can be listed
in the lease
• Mutual sharing the cost of installation and implementation of green
practice measures if necessary. Landlord and tenant respectively can
obtain an economic payback
(To be continued on next page..)
Read more at:
LaSalle, Green Leasing (Oct 2015), available at
ng Kong Green Building Council (2014) “Green Tenancy Driver for Office Buildings”, available at
OPERATION AND MANAGEMENT STAGE
4.2.4 Green Lease
Green Lease
Overview
• Leasing term initiatives:
ͳͳ A longer term can encourage the tenant to put in higher green capital
cost for procuring green materials, products and appliances
ͳͳ Allow flexibility in the “as-is” condition when the tenant moves out in
order to avoid waste due to reinstatement works
• Mutually agree the relevant timeframe, e.g. waste audit,
submission of consumption record and periodic meetings
*Example of succcessful green lease:
ͳͳ One of the leading real estate companies in the United States,
Brandywine realty Trust, advocated energy efficiency among
tenants by developing a green lease strategy. By 2012, the company
had already received Energy Star labels for 83 managed buildings.
The main green lease strategies included:
ͳͳ Charging energy saving measures to tenants as long as tenants
would benefit from operational cost savings in return. Brandywine
understood tenant had concerns about the estimated pay back and
thus monitored energy performance and allowed for a repayment
period. Tenants would not need to pay if the pay back was over
estimated. – This is a win-win situation
ͳͳ Obtaining tenants’ consensus to allow check meters to be
installed in units. Otherwise, monthly data should be submitted
by themselves. This ensures data can be collected for monitoring
purposes
(Source: Institute for Market Transformation, 2012)
Read more at:
ng Kong Green Building Council (2014) “Green Tenancy Driver for Office Buildings”, available at
2. U.S. Department of Energy, Institute for Market Transformat
Split
tility Data”, available at
*Note
The following 10 main reasons for
tenants to engage in a green lease
are taken from Jones Lang LaSalle
(JLL)’s “Perspective on sustainable
tenant strategies – 10 reasons you
should have a green lease”:
• To save energy and water
consumption costs
• To maintain a good relationship
with the landlord
• To support corporate green goals
• To enhance the reputation of the
company
• To demonstrate vision and
leadership within the industry
• To improve civic relations
• To contribute to certification
efforts
• To improve staff productivity
• To obtain additional savings
through waste management
• To contribute to creating a green
environment
Read more at:
Figure 4.2.8 Hong Kong Green Building
Council (2014) “Green Tenan
at
More green lease terms, principles and
sample can be referred to “Green Tenancy
Driver for Office Buildings” of Hong Kong
Green Building Council.
OPERATION AND MANAGEMENT STAGE
4.2.4 Green Lease
Benefits for Office Building
and Office Unit
Green lease is a lease that
involves sustainability as part of
a landlord-tenant agreement.
It encourages landlord-tenant
collaboration in agreeing
and implementing green
goals. “Green leases have the
potential to provide the leased
US office market up to $3.3
billion in annual cost saving,
reducing energy consumption
by up to 22% and reduction in
utility expenditure by $0.51 per
sq.ft.” (The Institute for Market
Transformation, 2015).
Green Strategies for Office Building
and Office Unit
z
Common terms of green lease
• Participation in green team
• Relevant timeframe
• Meeting for reporting and
reviewing purpose
• The purpose of the lease
• Leasing term initiatives
• Information on waste audits if
being practiced
• Installation of measuring devices
and submission of consumption
record
• Form and methodology
• Cost and profit sharing
• Bulk purchasing if
implemented
Green Strategies for Office
Building and Office Unit
z
Common terms of green
lease
• Participation in green
team
• Meeting for reporting and
reviewing purpose
• The purpose of the lease
• Information on waste audits if
being practiced
• Relevant timeframe
• Leasing term initiatives
• Installation of measuring devices
and submission of consumption
record
• Form and methodology
• Cost and profit sharing
• Bulk purchasing if
implemented
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UNIT
Office
BUILDING
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UNIT
Office
BUILDING
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