Green Leases Encourage Landlord-Tenant Collaboration

Cliff Majersik, executive director of the Institute for Market Transformation (IMT), joined Nareit for a video interview at Nareit’s 2018 ESG Forum in Seattle.

IMT is a national nonprofit organization focused on increasing energy efficiency in buildings.

Majersik discussed some of the benefits of green leases. He stressed that they are a “great way for landlords and tenants to work together.” Everybody comes out ahead when the building is more energy-efficient and costs are being shared equitably, he added.

Meanwhile, Majersik noted that its Green Lease Leaders Program now includes both a gold and silver level of recognition. The change was made because of feedback from IMT’s industry advisory committee, which includes several REITs.

Other issues Majersik commented on included IMT’s landlord-tenant energy partnership, which is a couple of years old but “really ramped up last year.” The goal of the partnership is to share best practices, he said.

Majersik also discussed new laws in Chicago and New York that will require energy grades to be displayed on the entrances of buildings. He noted that while buildings don’t need to do anything new to comply with the laws, they underscore the importance of doing a thorough job on energy use benchmarking and information sharing.