New Lease Model Shares Green Building Costs, Benefits

Traditional leases in commercial buildings are either gross leases (the landlord pays for utilities and other expenses) or net leases (the tenant pays for everything). According to Glenn Fischer, executive vice president of The Corporate Realty, Design, and Management Institute (CRDMI), neither situation works particularly well for promoting green building. “All of the benefits of energy efficiency and other improvements are flowing to one party,” he said of typical leases. CRDMI created a task force to write a lease that would benefit both building owners and tenants, which the organization released in July 2009. The lease not only splits up the financial benefits of green building but also requires both parties to prepare environmental performance reports annually. The lease is available for download for $90 at www.squarefootage.net/mgldwnld.htm.