By Lisa Brown
SAN FRANCISCO–Shorenstein Properties LLC was named a 2015 Green Lease Leader at the US Department of Energy’s (DOE) Better Buildings Summit in Washington D.C. Green Lease Leaders signed leases representing 415 million square feet this year, with the cumulated square footage now totaling 800 million square feet. The recognition was established by the Institute for Market Transformation (IMT) and the DOE Better Buildings Alliance to recognize property owners, tenants and brokers who are effectively using the lease to drive energy and water savings in commercial buildings—offering substantial business and environmental benefits.
Jaxon Love, sustainability program manager for Shorenstein Properties tells GlobeSt.com: “Shorenstein Properties has long been committed to finding the most efficient and sustainable ways to run our portfolio of prime office and mixed use assets. It’s an endeavor that permeates our overall operations and we welcome opportunities such as the green lease to work with our tenants to continue to drive sustainability throughout our properties.”
A green lease encourages collaboration to take action to improve efficiency, saving tenants and building owners on average 10% to 20% each month on a building’s energy and water bills. A study released by IMT showed that green leases could deliver nearly $3 billion in annual savings for the US office sector alone.
“Lease provisions that address barriers to resource conservation and pollution prevention benefit all parties. These mechanisms save money for landlords and tenants, improve building performance and facilitate regulatory compliance – not to mention the positive environment impacts,” said Love.
Shorenstein earned the Green Lease Leader title based on national lease provisions addressing capital improvements that result in energy savings, tenant submetering, energy information sharing between tenant and landlord, building performance certifications including Energy Star and LEED, and green construction standards. Since 2008, Shorenstein has reduced energy use by 16.2% and cut carbon emissions by 14.8%.
“Because of this recognition program, brokers, landlords and tenants now have a blueprint for writing leases that remove impediments to efficiency and align interests so landlords and tenants both benefit from improving building performance. IMT and the Better Buildings Alliance are proud to see that many of today’s Green Lease Leaders are using the lease transaction to lay the foundation for working together to boost sustainability on a major scale,” said Cliff Majersik, executive director for IMT.
Historically, real estate owners and tenants have had difficulty integrating sustainability into the lease process due to tension between owners and tenants over responsibilities and cost-sharing arrangements. The Green Lease Leaders program is helping to shine a light on replicable solutions that can be employed by others to get past this split incentive.
“I’m pleased to announce the continued success of the Green Lease Leaders program,” said Dr. Kathleen Hogan, deputy assistant secretary for energy efficiency at DOE. “This effort is showing that cooperation on energy efficiency is no longer just a niche practice.”
Founded in 1924, Shorenstein Properties LLC is a privately owned real estate firm active nationally in the ownership and management of office properties. In addition to the Green Lease Leaders honor, Shorenstein has achieved the global real estate sustainability benchmark’s (GRESB) highest rating–Green Star. GRESB is an industry-driven survey for assessing the sustainability performance of investment portfolios. Shorenstein drives LEED-certified property totaling 15 million square feet, with the majority certified at the Gold level. These efforts have realized $500,000 in annual energy cost savings that will avoid 1,800 metric tons of carbon dioxide per year – the equivalent of taking 400 cars off the road. Shorenstein was featured in a recent issue of Real Estate Forum that discussed pioneering projects.