Commercial, Demand Management, Energy Efficiency, Power Prices  -  September 30, 2016

New partnership aims to accelerate green leasing, unlock billions in energy savings for buildings

In a new, coordinated national effort to accelerate energy use reductions across billions of square feet of leased space, three industry groups have joined together to launch the Landlord-Tenant Energy Partnership.

According to a recent report from the U.S. DOE, achieving a 20% reduction in energy use in America's commercial, retail, industrial and office buildings would save $5 billion annually. Unfortunately, a lack of awareness and weak demand for energy-efficient spaces is preventing thousands of companies from unlocking this potential.

This new partnership — created by the Institute for Market Transformation, the Retail Industry Leaders Association, and the International Council of Shopping Centers — is hoping to change that.

"Tenants use over half the energy consumed in leased spaces across the U.S.," IMT Director of Market Engagement Adam Sledd said in a Sept. 29 news release announcing the launch of the partnership. "Often this energy is wasted by inefficient operations and equipment—so much so that their combined potential energy savings could be equivalent to taking the country of Mexico off the grid."

The groups said the partnership is hoping to build on standards for energy-aligned leasing, also known as "green leasing," practices established by IMT and the U.S. Department of Energy's Green Lease Leaders program. Additionally, it will work to improve the tenant site selection process; increase transparency of tenant utility consumption in office and retail buildings; promote adoption of energy-efficient build-out methods; and increase landlord-tenant interaction to enable energy-saving efforts throughout the course of a tenant's lease.

All of those practices, the groups said, position tenants and landlords to make more-informed business decisions regarding their operations and leased space.

The partnership also announced an advisory group comprised of industry leaders from companies including Brixmor Property Group, CBRE Group Inc. , Cushman & Wakefield, Gap Inc.,  Kimco Realty Corp., Nike Inc. and Tishman Speyer Properties. The advisory group also includes leaders from the DOE and the U.S. EPA's Energy Star program. 

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