Sullivan
Microsoft has discontinued support for Internet Explorer. To access the Sullivan website, please install a modern browser like Microsoft Edge or Google Chrome.

Sharon Leifer was quoted in the article, "Green Leases Rewrite Rules for Building Performance," published by Banker & Tradesman [sub. req'd] on April 9, 2023.

The article discusses new regulations prodding the building sector toward decarbonization, such as green leases, which are gaining favor as a way of aligning landlords' and tenants' financial interests. Applying to aspects of building operation that affect the environment, they include incentives for tenants to invest in green building projects.

"It's expensive to retrofit a lot of these old building," says Sharon. "Typically, in a large office building, the landlord is responsible for replacing the roof and the HVAC system and those types of things that would be substantial contributors to how green the building is."

Green leases ask tenants to chip in for clean energy projects, which can be a tall order. But companies can include green leases in their environmental, social and governance strategies, promoting their commitment to sustainability and potentially making them more attractive to potential job candidates.

"Project owners are very focused on being able to say to tenants: 'Look, our building is sustainable and it's got all these systems in place to be a green building,'" says Sharon. "And tenants want to be able to say to employees: 'We're moving into this building that's environmentally friendly and we're taking steps to reduce our impact on the climate.' That's important for both sides."