10 Things Companies Should Know About Sustainable Leases
As the needs of humanity continue to grow, environmental issues and green initiatives have come to the forefront of the global stage. Many companies and non-profit organizations are implementing green building technologies and sustainable leasing practices to do their part in reducing carbon emissions.
Sustainable leases or green leases, are commercial leases that align tenants and landlords interested in energy-efficient investments. These leases can be a gross or net lease and any commercial lease can become a green lease.
Companies that practice sustainable leasing can take advantage of various benefits beyond helping reduce harmful emissions. These include everything from saving money on operating costs to improving the company’s standing in the public eye.
1. Improve Employee Productivity
Using green leases to obtain eco-friendly buildings can also improve employee productivity. The main principles of green buildings are creating more openings for natural light and more excellent natural fixtures such as plants and water.
Studies show that these features positively impact mental health — the more natural a space is, the healthier employees are. This can lead to an increase in productivity for the company.
2. Generate Savings Through Waste-Stream Diversions
Another area where green leasing can ensure buildings reduce cost is waste management. Disposal of solid waste is a significant factor in a company’s spending — especially for more specialized industries such as medical and industrial.
Using a green lease can improve waste-stream diversions, separating solid waste into different categories. A building that produces a lot of recyclable material can use recycling programs to reduce spending on waste disposal.
3. Fewer Operating Costs
The cost of operation and maintenance for the average building is the bulk of its spending. Functions such as heating and cooling, lighting and other specialized equipment contribute to a higher energy bill at the end of the month.
Sustainable leases can ensure a company obtains a building that uses renewable energy resources. These can include solar energy and geothermal heating, significantly reducing energy consumption and decreasing energy bills. Using low-cost energy generators is also a good practice in case of an emergency.
4. Low Refurbishment Costs
Sustainable leasing also gives companies access to buildings that have gone through green or sustainable refurbishment. These buildings are existing properties that have been upgraded with sustainable technologies such as energy-efficient HVAC systems, renewable energy sources and Energy Star appliances.
5. Slow Depreciation of the Property
Environmentally friendly buildings also depreciate much more slowly than conventional buildings. This is because they use energy-saving technologies and environmentally friendly building materials — improving the resilience of the building and increasing its property value.
6. Enhances Your Company’s Brand
Using buildings enhanced with environmentally friendly and energy-saving technologies can improve a company’s standing with consumers. Studies show that the new generation of consumers is much more environmentally conscious than the previous generations.
7. Help LEED Certification Efforts
LEED stands for Leadership in Energy and Environmental Design — and is the most widely accepted standard for green building. LEED certification promotes green construction and building technologies with various programs. LEED-certified buildings can increase property values and the reputation of the company.
To become LEED-certified, buildings have to meet the quality standards set by specific categories. To increase their chances, companies should have a chief sustainability officer examine buildings for improvements.
8. Compliance with Environmental Legislation
In addition to LEED certification, many governments worldwide are becoming more aware of environmental issues and are enacting legislation that companies must follow. The scope of these legislations varies from company to company — but one of the universal requirements is for buildings to comply with eco-friendly regulations.
9. Increased Market Value
As the market turns towards sustainability practices, green buildings, and technologies are becoming more profitable. Companies that invest in green solutions will increase their market value.
10. Encourages Landlords to Invest in Green Building Principles
Finally, green leasing encourages landlords and property owners to invest more in green building principles. This can go a long way towards reducing the global carbon footprint and achieving the worldwide net-zero emissions goal.
Green Leases are Good for Companies
There are many benefits for companies to invest in green buildings beyond those listed here. From increasing efficiency and reducing energy costs to promoting mental health, green buildings and construction are the way of the future.