DOE Releases Green Lease Website.

29 Mar 2012

Photo credit: By Andrea_44 @ Flickr

The Department of Energy (“DOE”) and several partners (including BOMA) recently launched a website (link here) consolidating green lease resources. The website includes sample leases from a number of public agencies, is organized by resource type, and resources are tagged by relevance to audience and building types.

So what is a “green lease”?  A green lease, among other things, seeks to promote energy efficiency by attempting to equitably align the costs and benefits of efficiency investments between building owners and tenants.  Under the majority of “triple net” leases, which is probably the most common type of commercial lease that I deal with on a day-to-day basis, building owners have little to no incentive to invest in efficiency for their building systems because the operating expenses are passed through to their tenants, who would therefore receive all of the energy cost savings.  In other words, if you are the landlord, aside from being “socially responsible,” why would you spend a few extra thousand dollars on a more energy efficient HVAC unit if the cost of running the unit is entirely paid for by your tenant?  A green lease attempts to solve this “split incentive problem.”

While the new DOE website isn’t very robust at the moment, it is just the start of the online library, and it looks to offer some good (and free) basic information about green leasing.

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