The benefits of green leases

The benefits of green leases

With the implementation of the EU Taxonomy and the obligation for large companies to report on their taxonomy score, ESG factors have become a key focus for the industry.

We are beginning to see “green” leases in our portfolio now. These are leases that take environmental criteria into account. We believe green leases are hugely beneficial in aligning the tenant and the landlord’s ESG commitments and supporting them in working towards a common goal.

Some key benefits to a green lease include:

Reduced Operating Costs: A green lease can include provisions for energy-efficient building systems, water-saving measures, and waste reduction programs, leading to lower operating costs for the tenant and landlord and potentially increasing profitability.

Increased Property Value: Implementing sustainable practices can increase the overall value of a property, attracting tenants who are environmentally conscious and potentially increasing rental rates.

Improved Tenant Satisfaction: A green lease can help foster a positive relationship between the landlord and tenant by showing a commitment to sustainability and environmental responsibility. This can lead to improved tenant satisfaction and potentially longer lease agreements.

Compliance with Regulations: The implementation of EU Taxonomy may impact many retail real estate landlords. A green lease can help ensure compliance with these regulations support both the tenant and the landlord in their reporting commitments.

Positive Public Image: Implementing sustainable practices can enhance the public image of the property, the tenant, and the landlord, demonstrating a commitment to environmental responsibility and potentially attracting more environmentally conscious customers.

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