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Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 1
© B. Alan Whitson, RPA 1Model Green Lease - 2010
Corporate Realty, Design & Management Institute4850 SW Scholls Ferry Road, Suite 203Portland, OR 97225 503.274.7162www.squarefootage.net
B. Alan Whitson, RPA949.262.9380 AWhitson@squarefootage.net
ModelGreenLease
© B. Alan Whitson, RPA 2Model Green Lease - 2010
B. Alan Whitson, RPA
• Real Estate Experience– 40 Million Square Feet
• Office• Industrial• Data Centers• Hotel & Resort
– Roles• Asset Manager• Commercial Real Broker• Construction Manager• Development Manager• Facility Manager• Real Estate Consultant
• Author– Books, Articles & Software Bank of America - San Francisco, CA
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 2
© B. Alan Whitson, RPA 3Model Green Lease - 2010
Articles, Books & Software
Articles• Lease Structure Hurts Energy
Efficiency– BOMA Magazine, June 2005
• Green Lease– Environment Design +
Construction, July 2006• Green Lease Agreements:
Navigating Uncharted Waters – Sustainable Industries,
April 2008• Turning Green in Gold
– OfficeInsights
Books & Software• 327 Questions to Ask Before
You Sign a Lease– 1992
• Building Operating CostModel Lease Addendum– 1993
• Bottom Line - Comparative Lease Analysis Software– 1994
• 365 Important Questions to Ask About Green Buildings– Co Author Jerry Yedulsen– 2006
© B. Alan Whitson, RPA 4Model Green Lease - 2010
Advisory Board Model Green Lease Project
• Jeff AustinWachovia
• Clint McMorrisToyota
• Laurie McMahonCassidy & Pinkcard Colliers
• Olivia MillarStudley
• Bruce HechtSwearingen Realty Group
• Gaines BagsbyCB Richard Ellis
• Jeff WoolfCushman & Wakefield
• Paul WilliamsWebcor
• George LohnesUGL Unicco
• Randy BurkeDCS Daylight Cleaning Systems
• James KiriazesSiemens
• Don MillsteinE-Mon
• David KanadaIDeAs
• Kim ShinnTLC Engineering
• Gary ChristensenThe Christensen Co.
• Richard JohnsonMatrix Development
• Dave HewettDavid W. Hewett, Inc.
• Vicki HardingPepper Hamilton
• Patrick RamseyPaul Hastings
• Shannon SentmanHolland & Knight
• Scott ChrisnerChrisner Group
• Paul A. KingBovis Lend Lease
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 3
© B. Alan Whitson, RPA 5Model Green Lease - 2010
Agenda
Criteria• Minimum Legal Speak• Real World & Economic Benefits• Evidence Based• Concepts
– Green buildings don’t cost more
– Marketplace set rents, you define your costs
– Good design & management adds value faster than cost
– What gets measured - gets improved
– Sustainability is not a product, it is the benefit of the process
– Quality is free, doing things wrong is expensive
Content1. Background
– Objective, Approach, Benefits– Workplace Performance & Costs– Commercial Real Estate Leases
2. Model Green Lease– Ten Essential Elements – Implementing the Model Green
Lease
Background
Objective, Approach, BenefitsWorkplace Performance & CostsCommercial Real Estate Lease
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 4
© B. Alan Whitson, RPA 7Model Green Lease - 2010
Objective - Model Green Lease Project
Create an incentive to effectively, design, build, and manage
high-performance and sustainable office buildings through a green lease.
© B. Alan Whitson, RPA 8Model Green Lease - 2010
Approach - Model Green Lease Project
• Clean Sheet of Paper– Not a Cut & Paste of Existing Standard Form Lease– Rethink the Tenets of Current Office Leasing Practices– Build on Historical Context Where Appropriate– Integrate Building Science & Improved Technologies
• Plain Language Document– Easy to Read & Understand– Specific & Performance Based
• Neutral – Fair & Balanced– Neither Landlord or Tenant Centric– Advisory Board
• Follow ANSI review and input formula
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 5
© B. Alan Whitson, RPA 9Model Green Lease - 2010
Benefits - Model Green Lease
• Congruent Environmental Goals– Landlord & Tenant
• Alignment of Costs & Benefits– Return Operational Risk to
Landlord & Reward Landlord for Operational Excellence
• Landlord's Have Technical Expertise – Tenants Do Not
• Metrics & Verification of Building Performance– Annual Report
• Improved Performance– Building & Workplace
• Increased Asset Value
© B. Alan Whitson, RPA 10Model Green Lease - 2009
Workplace Performance & Costs
Model Green Lease
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© B. Alan Whitson, RPA 11Model Green Lease - 2010
How Well Does the Workplace Perform?
-3 -2 -1 0 1 2 3
Cleanliness & Maintenance
Acoustics
Lighting
Air Quality
Thermal Comfort
Office Furnishings
Office Layout
General Satisfaction - Workspace
General Satisfaction - Building
IEQ Database Green Buildings
Source: CBE, IEQ Database - Occupant Satisfaction > 210 Buildings 34,000 Respondents
© B. Alan Whitson, RPA 12Model Green Lease - 2010
...Personal Lighting Control
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 7
© B. Alan Whitson, RPA 13Model Green Lease - 2010
The Workplace & People - Ten Year Cost
Office Rent $68,973347 SF @ $24.03 Yr *
Tenant Improvements $8,683347 SF @ $25.00
Office Furniture $8,014$6,000 + $300 Yr *
Technology $87,471$10,000 + $10,000 Yr *
Salary & Benefits $690,356$83,678 Yr *
Total Costs $863,497Present Value 10-Years
Energy is 0.6% of Total Costs
8%
10%
80%
1%1%
Rent T/I Furniture Tech Salary & Benefits
Source: BOMA, BLS, * 2.5% Annual CPI, PV @ 5.75% Discount rate
© B. Alan Whitson, RPA 14Model Green Lease - 2009
Understanding Commercial Real Estate Leases
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 8
© B. Alan Whitson, RPA 15Model Green Lease - 2010
What’s A Lease?
• Elements Required for a Lease– Parties– Property– Term– Consideration
• Lease Defines the Contractual Relationship Between Landlord & Tenant – Who Does What, When, How,
and Who Pays– Esoteric Issues: Financing,
Insurance, Destruction ...– Survives Changes in Building
Ownership
© B. Alan Whitson, RPA 16Model Green Lease - 2010
Landlord’s & Tenant’s Business Objectives
Landlord• Maximum Return on Investment
– Cash Flow & Sale Proceeds• Net Operating Income
– Vacancy Rate– Lease Up– Build Out & Move In– Tenant Turnover
– Limit Capital Investment• Durability of Income Stream
– Tenant Credit Worthiness– Longer Lease Term
• Financial Management– No Surprises
Tenant• Productive Workplace
– Location– Building Quality– Program - Space Efficiency
• Limit Capital Investment– Use of Space – Not Ownership
• Limit First Costs
• Flexibility– Shorter Lease Term
• Total Cost of Occupancy– Predictable– No Surprises
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 9
© B. Alan Whitson, RPA 17Model Green Lease - 2009
Lease Negotiation Process
© B. Alan Whitson, RPA 18Model Green Lease - 2010
Leasing Process – Tenant Seeking Space
Define Criteria
Search & Inspection
Indentify Candidates
Request for Proposals
Landlord Proposals
Building Evaluation
Financial Analysis
Narrowing of Field
Negotiations
Final Proposals
Decision
Draft Lease
Final Negotiations
Final Lease
Model Green Lease
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© B. Alan Whitson, RPA 19Model Green Lease - 2010
Where Does Green Enter the Deal...
Define Criteria
Search & Inspection
Indentify Candidates
Request for Proposals
Landlord Proposals
Building Evaluation
Financial Analysis
Narrowing of Field
Negotiations
Final Proposals
Decision
Draft Lease
Final Negotiations
Final Lease
© B. Alan Whitson, RPA 20Model Green Lease - 2010
Where Do You “Green” a Lease?
• A building’s environmental performance standards are defined in specific lease clauses or lease exhibits:– Building Use– Rent– Operating Expense– Services & Utilities– Hazardous Materials– Maintenance & Repairs– Alterations & Improvements– Building Rules & Regulations– Contractor Rules & Regulations– Tenant Work Letter
Model Green Lease
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© B. Alan Whitson, RPA 21Model Green Lease - 2010
Lease Negotiation Issues
The Lease
Space Time Financial Legal Physical
Amount
Load Factor
Expansion
Storage
Parking
Identity
Occupancy
Lease Term
Rent Commencement
Renewal
Base Rent
Escalation
ImprovementAllowance
Free Rent
Operating Expenses
After Hours Charges
Takeover
Sublease
Assignment
Non-Disturbance
Self-Help
Repairs
Cancellation
Insurance/Destruction/Taking
Building Hours
HVAC
Power
Services
Tenant Fit-Out
Hazardous Material
Submittals
Equity
Future Alterations
Restoration
Notices
© B. Alan Whitson, RPA 22Model Green Lease - 2010
Lease Negotiation Issues - Green
The Lease
Space Time Financial Legal Physical
Amount
Load Factor
Expansion
Storage
Parking
Identity
Occupancy
Lease Term
Rent Commencement
Renewal
Base Rent
Escalation
ImprovementAllowance
Free Rent
Operating Expenses
After Hours Charges
Takeover
Sublease
Assignment
Non-Disturbance
Self-Help
Repairs
Cancellation
Insurance/Destruction/Taking
Building Hours
HVAC
Power
Services
Tenant Fit-Out
Hazardous Material
Submittals
Equity
Future Alterations
Restoration
Notices
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 12
Model Green Lease
Ten Essential Elements of theModel Green LeaseImplementing the Model Green Lease
Ten Essential Elements Model Green Lease
Environmental Performance Objective
Model Green Lease
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© B. Alan Whitson, RPA 25Model Green Lease - 2010
Environmental Performance Objective
• Purpose:– Establishes “intent” of parties– Define common environment goals for tenant and landlord
• Issues:– Lease are long-term agreements– People that negotiated lease, may not administer the lease– Things change; Laws, Technology, Science, and Standards
• Tools:– Set “big picture” goals in Lease– Use Rules & Regulations and other lease exhibits (e.g. Building
Standards, Cleaning Requirements, and Contractor Rules & Regulations) to define operational details
© B. Alan Whitson, RPA 26Model Green Lease - 2010
Environmental Performance Objective…
(a) The parties agree it is in their mutual best interest that the Building and Premises be operated and maintained in a manner that is environmentally responsible, fiscally prudent, and provides a safe and productive work environment.
(b) The Tenant shall conduct its operations in the Building and within the Premises to minimize: (i) direct and indirect energy consumption and greenhouse gas emissions; (ii) water consumption; (iii) the amount of material entering the waste stream; (iv) negative impacts upon the indoor air quality of the Building and Premises.
Model Green Lease
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© B. Alan Whitson, RPA 27Model Green Lease - 2010
Environmental Performance Objective
(c) The Landlord shall operate and maintain the Building and the Premises to minimize: (i) direct and indirect energy consumption and greenhouse gas emissions; (ii) water consumption; (iii) the amount of material entering the waste stream; (iv) negative impacts upon the indoor air quality of the Building and Premises.
(d) The Landlord shall use its reasonable efforts to cause other tenants of the Building to conduct their operations in the Building and their premises in conformity with the Environmental Performance Objective.
Ten Essential Elements Model Green Lease
Rent Structure
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 15
© B. Alan Whitson, RPA 29Model Green Lease - 2010
Rent Structure
• Purpose:– Reward Landlord for designing, building, managing and owning a
high-performance and sustainable office building
• Issues:– Net lease format creates a financial disincentive for Landlord– Net lease format creates minimal financial incentive for Tenant
• Tools:– Gross Lease with Expense Stop or Base Year
• Comprehensive Expense Definition– Amortization of Project Costs Which Reduce Operating Costs– Retro-Commissioning Services
• Right to Audit Clause
© B. Alan Whitson, RPA 30Model Green Lease - 2010
Glossary
• Escalation Clause: A lease clause that provides for the rent to be increased. This may be accomplished by several means such asfixed periodic increases, increases tied to the consumer price index or adjustments based on changes in operating expenses paid by the landlord in relation to an expense stop or base year reference.
• Base Year: Actual operating expenses for a specified base year, most often the year in which the lease commences. Once the base year expenses are known, the lease essentially becomes an expense stop lease.
• Expense Stop: An agreed dollar amount for operating expenses (expressed for the building as a whole or on a square foot basis) over which the tenant will pay its pro-rated share of increases. May be applied to specific expenses (e.g., property taxes or insurance). Also called “dollar stop.”
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 16
© B. Alan Whitson, RPA 31Model Green Lease - 2010
Glossary
• Operating Expenses: The cost of operating an office building, such as cleaning, repairs and maintenance, utilities, security, management fees, taxes, insurance and similar day-to-day expenses. Operating expenses should not include financial expenses like debt service, ground leases, depreciation and income taxes; capital expenses such as roof replacement; any expense associated with the production of income such as leasing commissions and legal fees.
• Right to Audit: A lease clause that gives the tenant the right to audit the lease and defines the process for doing so. The goal of a lease audit is to determine whether charges assessed by thelandlord under a tenant’s lease are correct and proper, and refund any overcharges by the landlord to the tenant.
© B. Alan Whitson, RPA 32Model Green Lease - 2009
Lease Types
Model Green Lease
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© B. Alan Whitson, RPA 33Model Green Lease - 2010
Gross and Net Leases
Lease Type Continuum
Gross Lease Net Lease
Net Lease:The base rent does not include building taxes, insurance, utilities, or other operating expenses
Gross Lease:The base rent does include building taxes, insurance, utilities, or other operating expenses
According to CoStar 58% of office buildings do not include energy in their
base rent
© B. Alan Whitson, RPA 34Model Green Lease - 2010
The Net Lease Paradox
Landlord's Perspective
A B C D
Base Rent Operating Expenses
Tenant's Perspective
A B C D
Base Rent Operating Expenses
Model Green Lease
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© B. Alan Whitson, RPA 35Model Green Lease - 2010
The Gross Lease Advantage
Landlord's Perspective
A B C D
NOI Operating Expenses
Tenant's Perspective
A B C D
Base Rent
© B. Alan Whitson, RPA 36Model Green Lease - 2009
Three Myths AboutOperating Expenses
Model Green Lease
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© B. Alan Whitson, RPA 37Model Green Lease - 2009
Myth One
We have done a good job of reducing energy use in office buildings
© B. Alan Whitson, RPA 38Model Green Lease - 2010
Income & Expense 2007 - 1985
2007 2006 2005 2004 2000 1995 1990 1985
Total Income $23.74 $23.86 $22.75 $24.04 $22.72 $19.33 $17.26 $14.73
Cleaning 12% 1.36 1.34 1.21 1.20 1.17 1.20 1.15 1.05
Repairs & Maint. 11% 1.71 1.69 1.55 1.52 1.37 1.55 1.38 1.21
Utilities 21% 2.35 2.28 2.00 1.83 1.86 1.87 1.84 1.85
Road, Grd & Security 8% .88 .82 .72 .73 .68 .61 .50 .38
Administrative 12% 1.32 1.37 1.18 1.22 1.18 1.12 .90 .68
Fixed Expenses 36% 3.89 3.70 3.06 3.39 3.14 2.98 2.84 2.17
Total Expenses $11.61 $11.08 $9.72 $9.89 $9.40 $9.33 $8.61 $7.34
Net Operating Income $12.13 $12.78 $13.03 $14.15 $13.32 $10.00 $8.65 $7.39
BOMA Experience Exchange Report, All Buildings
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 20
© B. Alan Whitson, RPA 39Model Green Lease - 2010
Commercial Electricity Prices
0
1
2
3
4
5
6
7
8
9
10
11
1960 1965 1970 1975 1980 1985 1990 1995 2000 2005
Cen
ts p
er k
WH
Source: EIA – Form EIA 826 - Oct 2009 Table 5.3 US Annual Avg.
© B. Alan Whitson, RPA 40Model Green Lease - 2010
Electricity Usage
0% 5% 10% 15% 20% 25% 30%
Misc.
Refrigration & Cooking
Water
Exterior Light
Office Equipment
Ventilation
Heating
Cooling
Interior Light
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 21
© B. Alan Whitson, RPA 41Model Green Lease - 2009
Myth Two
Net leases encourage tenants to control their operating costs
© B. Alan Whitson, RPA 42Model Green Lease - 2010
Benchmarks
976,826 Sq Ft868,616.7 Sq FtAverage Building Size
267.03312.08Sq Ft/Office Worker
22140Number of Buildings
21,490,188 Sq Ft121,606,342 Sq FtTotal Building Rentable Area
$2.99$2.23Electricity Cost Sq Ft – Avg.
131.79111.40Building Hours/Week
109.8381.06K BTUs/Sq Ft
85.76%88.39%Office Occupancy Rate
Corporate FacilitiesDowntown
Agency ManagedDowntown
BOMA Experience Exchange Report - 2008
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 22
© B. Alan Whitson, RPA 43Model Green Lease - 2010
Operating Expense Comparison
$9.77
2.01
7.41.45
.58
.04
2.04
1.421.12
25Percentile
$9.57
2.84
6.101.51
.57
.04
1.59
1.291.08
25Percentile
Corporate Facilities - DowntownAgency Managed Buildings - Downtown
$13.61$11.78$11.82$15.28$11.69$13.00Total
4.903.103.286.324.275.06Fixed Expenses
10.338.549.678.697.327.94Total Operating1.59.70.961.511.051.11Administrative
1.04.78.83.98.75.85Security.15.08.18.10.06.08Roads/Grounds
3.212.442.692.602.102.32Utilities
2.891.802.332.171.781.86Repairs & Maint.2.001.651.711.771.431.47Cleaning
75Percentile
50PercentileAverage
75Percentile
50PercentileAverage
BOMA Experience Exchange Report - 2008
© B. Alan Whitson, RPA 44Model Green Lease - 2010
On Average 21.8% Higher Operating Costs
$6.10$7.32
$7.94$8.69
$7.41$8.54
$9.67$10.33
25 Percentile Median Average 75 Percentile
Agency Managed Corporate Facilities
BOMA Experience Exchange Report - 2008
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 23
© B. Alan Whitson, RPA 45Model Green Lease - 2009
Myth Three
There is little variation in operating costs among Class A office buildings in a city
© B. Alan Whitson, RPA 46Model Green Lease - 2010
Operating Expenses Vary Greatly
• 163 Office Buildings• 600,000 Sq. Ft. or More• Downtown (CBD)• 11 Cities
Atlanta (13) Boston (20)Charlotte (8) Chicago (39)Dallas (7) Houston (15)Minneapolis (15) New York (10)Philadelphia (6) San Francisco (24)Seattle (6)
$1.23
$0 $1 $2 $3 $4
25%< $1.59
25%> $2.82
Middle50%
249 Building Avg.
Data Source: 2008 BOMA Experience Exchange Report
Utilities
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 24
© B. Alan Whitson, RPA 47Model Green Lease - 2010
Cleaning
$0 $1 $2 $3 $4 $5 $6
Seattle
San Francisco
Philadelphia
New York
Minneapolis
Houston
Dallas
Chicago
Charlotte
Boston
Atlanta
Data Source: 2008 BOMA Experience Exchange Report
© B. Alan Whitson, RPA 48Model Green Lease - 2010
Repairs & Maintenance
$0 $1 $2 $3 $4 $5 $6
Seattle
San Francisco
Philadelphia
New York
Minneapolis
Houston
Dallas
Chicago
Charlotte
Boston
Atlanta
Data Source: 2008 BOMA Experience Exchange Report
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 25
© B. Alan Whitson, RPA 49Model Green Lease - 2010
Utilities
$0 $1 $2 $3 $4 $5 $6
Seattle
San Francisco
Philadelphia
New York
Minneapolis
Houston
Dallas
Chicago
Charlotte
Boston
Atlanta
Data Source: 2008 BOMA Experience Exchange Report
© B. Alan Whitson, RPA 50Model Green Lease - 2010
Roads & Grounds
$0 $1 $2 $3 $4 $5 $6
Seattle
San Francisco
Philadelphia
New York
Minneapolis
Houston
Dallas
Chicago
Charlotte
Boston
Atlanta
Data Source: 2008 BOMA Experience Exchange Report
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 26
© B. Alan Whitson, RPA 51Model Green Lease - 2010
Security
$0 $1 $2 $3 $4 $5 $6
Seattle
San Francisco
Philadelphia
New York
Minneapolis
Houston
Dallas
Chicago
Charlotte
Boston
Atlanta
Data Source: 2008 BOMA Experience Exchange Report
© B. Alan Whitson, RPA 52Model Green Lease - 2010
Administrative
$0 $1 $2 $3 $4 $5 $6
Seattle
San Francisco
Philadelphia
New York
Minneapolis
Houston
Dallas
Chicago
Charlotte
Boston
Atlanta
Data Source: 2008 BOMA Experience Exchange Report
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 27
© B. Alan Whitson, RPA 53Model Green Lease - 2010
Total Operating Expenses
$0 $2 $4 $6 $8 $10 $12 $14
Seattle
San Francisco
Philadelphia
New York
Minneapolis
Houston
Dallas
Chicago
Charlotte
Boston
Atlanta
Data Source: 2008 BOMA Experience Exchange Report
© B. Alan Whitson, RPA 54Model Green Lease - 2010
Fixed Expenses
$0 $2 $4 $6 $8 $10 $12 $14
Seattle
San Francisco
Philadelphia
New York
Minneapolis
Houston
Dallas
Chicago
Charlotte
Boston
Atlanta
Data Source: 2008 BOMA Experience Exchange Report
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 28
© B. Alan Whitson, RPA 55Model Green Lease - 2010
Total Operating & Fixed Expenses
$0 $5 $10 $15 $20 $25 $30
Seattle
San Francisco
Philadelphia
New York
Minneapolis
Houston
Dallas
Chicago
Charlotte
Boston
Atlanta
Data Source: 2008 BOMA Experience Exchange Report
© B. Alan Whitson, RPA 56Model Green Lease - 2010
The Spread in Operating Expenses
16.7%
7.0%
8.0%
37.6%
25.8%
21.2%
24.9%
30.8%
26.8%
18.2%
35.8%
0% 20% 40% 60%
Seattle
San Francisco
Philadelphia
New York
Minneapolis
Houston
Dallas
Chicago
Charlotte
Boston
Atlanta
Data Source: 2008 BOMA Experience Exchange Report
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 29
© B. Alan Whitson, RPA 57Model Green Lease - 2009
Case Study
Banner Bank BuildingBoise, IDLEED CS, Platinum
© B. Alan Whitson, RPA 58Model Green Lease - 2010
Banner Bank Building - Boise, ID
• 180,000 Sq Ft, 11-Stories• Construction Costs
– $120 Sq Ft• Opened July 2006
– 14% Leased at opening– Building accounted 34% of
vacant space in CBD– 85%+ Leased in 1-Year– 98%+ Leased
• Office Rents– $19.00 - $21.50 Gross Lease
• CBD Market Rate• Operating Costs
– 37.4% Below Competitors
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 30
© B. Alan Whitson, RPA 59Model Green Lease - 2010
Design & Construction
• LEED CS Platinum– 50% - Less Energy Use– 80% - Less Water Use
• Building Features– Column Free Space– Under Floor Air Distribution– Moveable Wall System– Lighting Control– Low E Glass– Cool Roof– Recycled Water
• Stormwater– Low Flow Plumbing Fixtures– Geothermal Heat
© B. Alan Whitson, RPA 60Model Green Lease - 2010
Value was Added in Four Areas
1. Spending in one area is offset by greater savings in other areas• Raised Floor - HVAC
2. Improving the quality of operations• Temperature & IAQ
3. Capitalize the savings in operating costs• Electric Hand Dryers
• $373,333 Value Added4. Tax savings and cost of
change over• Movable Walls, Modular PVD
Cabling, Raised Floor
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 31
© B. Alan Whitson, RPA 61Model Green Lease - 2010
Per Square Foot “Market” Downtown Boise
Total Income $19.95 - Total Expenses -7.75 = Net Operating Income $12.20 ÷ Capitalization Rate 7.5% = Building Value $162.67
Valuation - Income Capitalization Method
Downtown Boise, IDColliers
© B. Alan Whitson, RPA 62Model Green Lease - 2010
Per Square Foot “Market” Downtown Boise Banner Bank Building
Total Income $19.95 $19.95 - Total Expenses -7.75 -4.85 = Net Operating Income $12.20 $15.10 ÷ Capitalization Rate 7.5% 7.5% = Building Value $162.67 $201.33 Value Created per sq ft $38.66 Total Value Created $6,960,000
Value of Building Green
Downtown Boise, IDColliers
Model Green Lease
Corporate Realty, Design & Management Institute - www.squarefootage.net 32
© B. Alan Whitson, RPA 63Model Green Lease - 2010
How Tenants Benefit with Green Lease
$19.50
$20.00
$20.50
$21.00
$21.50
Base Year Year 2 Year 3 Year 4
Market Banner Bank
Assume 5% Annual Increase in Operating Costs
Ten Essential Elements Model Green Lease
Energy Useby Tenant
Model Green Lease
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© B. Alan Whitson, RPA 65Model Green Lease - 2010
Energy Use by Tenant
• Purpose:– Manage Tenant Energy Use
• Issues:– Define baseline energy use for tenant - include in Base Rent– Actual Tenant Usage replaces Pro Rata Share Allocation
• Tools:– Energy Allowance: 6.4 KWH/Sq Ft/Year – 21.8 KBtu/Sq Ft/Year
• Building Hours 59 Hours per Week• Lights 0.78 Watts per Sq Ft – EPAct 2005• Plug Load 1.30 Watts per Sq Ft
– Sub-Metering• Management by Exception Process
© B. Alan Whitson, RPA 66Model Green Lease - 2010
Reducing Building Operating Hours is Key
Weekly Operating Hours When HVAC Is Provided Without Extra ChargeAgency Managed Buildings
All Buildings 88.70 77.2850K - 99K Sq Ft 79.84 75.69100K - 299K Sq Ft 80.87 76.98300K - 599K Sq Ft 88.86 88.83>600K Sq Ft 106.62 94.94
Model Green Lease
Building Hours - 59 Hours per WeekMon – Fri 7:00 am to 6:00 pmSat [with prior notice] 8:00 am to 1:00 pm
Downtown Suburban
Data Source: BOMA Experience Exchange Report
Model Green Lease
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© B. Alan Whitson, RPA 67Model Green Lease - 2010
Building Operating Hours per Week
0 20 40 60 80 100 120 140
Washington
San Francisco
Philadelphia
New York
Minneapolis
Los Angeles
Houston
Denver
Cleveland
Chicago
Boston
Atlanta
Data Source: BOMA Experience Exchange Report
© B. Alan Whitson, RPA 68Model Green Lease - 2010
Calculating the Energy Allowance
Lighting (w/sq ft) .78 Plug Load (w/sq ft) 1.3 Sub-Total 2.08Operating Hours/Week × 59Sub-Total Week 122.72Convert to Annual × 52Sub-Total Annual 6,381.44Convert to KWH/Sq Ft ÷ 1000Total KWH/Sq Ft/Year 6.3814
KBtu/Sq Ft/Year 21.8
Lighting - EPAct 2005, 40% Reduction from ASHRAE 90.1-1999Plug Load - 2007 oPod Study of California Offices
Model Green Lease
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© B. Alan Whitson, RPA 69Model Green Lease - 2009
Case Study
New York TimesNew York, NY
© B. Alan Whitson, RPA 70Model Green Lease - 2010
New York Times Light Controls
“We designed our building to use 1.28 watts per square foot of lighting power ... The New York Times Company is using only 0.38 – that’s 70% less.”
Glenn HughesDirector of Construction for The New York Times Company during design, installation, and commissioning of The New York Times Building
Strategies:– Scheduling 2%– Occupancy Sensors 10%– Daylight Harvesting 30%– Light Level Tuning 58%
Savings: $315,100 yr / $0.51 sq ft
Current NYC Code is 1.1 watts
Model Green Lease
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Ten Essential Elements Model Green Lease
Operational Performance
© B. Alan Whitson, RPA 72Model Green Lease - 2010
Operational Performance
• Purpose:– Define buildings operational performance in relation to specific
performance standards and metrics
• Issues:– Lease have traditionally used vague terms like “reasonable”,
“comparable with other Class A office buildings”
• Tools:– ANSI/ASHRAE 55-2004, Thermal Environmental Conditions for
Human Occupancy– ANSI/ASHRAE 62.1-2004, Ventilation for Acceptable Indoor Air
Quality– Commissioning & Retro-Commissioning
Model Green Lease
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© B. Alan Whitson, RPA 73Model Green Lease - 2010
Heating, Ventilation and Air Conditioning
(a) Heating, ventilation and air conditioning (“HVAC”) during Normal Business Hours, in season at such temperatures and in such amounts as to comply with ANSI/ASHRAE Standard 55-2004, Thermal Environmental Conditions for Human Occupancy, and ANSI/ASHRAE Standard 62.1-2004, Ventilation for Acceptable Indoor Air Quality. Air filtration shall be provided and maintained with filters having a minimum efficiency reporting value (MERV) as determined by ANSI/ASHRAE Standard 52.2-1999, Method of Testing General Ventilation Air Cleaning Devices for Removal Efficiency by Particle Size. Pre filters shall be have a MERV of 8 or higher, and final filters shall have a MERV of 14 or higher for all outside air intakes and inside air recirculation returns.
© B. Alan Whitson, RPA 74Model Green Lease - 2010
Heating, Ventilation and Air Conditioning
(b) The HVAC system which services the Premises shall be designed, installed and maintained in a manner which shall maximize its efficiency and shall, during Normal Business Hours, maintain the temperature of the Premises within the following range of temperatures, subject to unusual heat loads caused by Tenant's extraordinary use of the Premises or alteration of the Premises made contrary to the provisions of this Lease:
Summer Outside: 93° F Dry Bulb - 74° F Wet BulbInside: 75° F Dry Bulb - 50% Relative Humidity
Winter Outside: 22° F Dry BulbInside: 72° F Dry Bulb - 50% Relative Humidity
Building's HVAC internal heat loads shall be based upon [INSERT]watts per rentable square foot (RSF) for lighting and power and one (1) person per one hundred and fifty (150) rentable square feet.
Model Green Lease
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Ten Essential Elements Model Green Lease
Annual Performance Report to Tenant
© B. Alan Whitson, RPA 76Model Green Lease - 2010
Annual Performance Report to Tenant
• Purpose:– Transparency, Environmental Reporting– Encourage Measurement & Verification, and Benchmarking
• Issues:– Energy, Water, Recycling
• State of California requires Building Energy Statement in 2009– Certification of Building Performance Compliance by Landlord– Landlord Record Keeping, and Auditable by Tenant
• Tools:– Integrates with Annual Operating Expense Adjustment Process– Sub Metering, Contractor Rules & Regulations– Accounting System, Building Automation, and Green Vendors
Model Green Lease
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© B. Alan Whitson, RPA 77Model Green Lease - 2010
Annual Performance Report Metrics
• Energy UseActual / Per Sq Ft
– Electricity– Natural Gas– Steam– Chilled Water– Fuel Oil
• Renewable Energy– Renewable Energy
Used– Percentage of Total
Energy
• Operating Hours
• Water UseActual / Per Sq Ft
– Irrigation– Domestic Cold Water– Domestic Hot Water– Cooling Tower– Other Process Water– Total Potable Water
Used– Reclaimed or Grey
Water Used
• Waste StreamBy weight or volume
– Consumables– Durable goods– Construction &
Demolition– Total– Reporting levels
• Sent to landfill or incineration facilities
• Diverted from landfill or incineration facilities
• Waste Diversion Rate
© B. Alan Whitson, RPA 78Model Green Lease - 2009
Case Study
Hearst TowerNew York, NY
Model Green Lease
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© B. Alan Whitson, RPA 79Model Green Lease - 2010
Design
• 46 Stories, 856,000 Sq Ft• LEED C&S Gold, LEED CI Gold• “The Hearst Tower is designed
to be 26% more energy-efficient than a standard office building.”
• Key Lighting Design Features– 14,000 Light Fixtures– Photo sensors control artificial
light based on the amount of natural light available
– Motion sensors turn off lights and computers when area is unoccupied
Hearst Tower – New York, NY
© B. Alan Whitson, RPA 80Model Green Lease - 2010
Real Life: July 28, 2008 2:38 AM
Model Green Lease
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Ten Essential Elements Model Green Lease
Hazardous Materials
© B. Alan Whitson, RPA 82Model Green Lease - 2010
Hazardous Materials
• Purpose:– Requires that neither landlord or any tenant violates any federal,
state or local law or regulations regarding the use, generation,presence, storage, disposal, or release of hazardous materials
– Defines what is a “hazardous material”
• Issues:– Requires expert legal help– Survives lease expiration or termination
• Tools:– Federal, State & Local Laws and Regulations
• CERCLA (Comprehensive Environmental Response, Compensation and Liability Act)
• RCRA (Resource Conservation and Recovery Act)
• TSCA (Toxic Substances Control Act)
Model Green Lease
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© B. Alan Whitson, RPA 83Model Green Lease - 2010
Understand the Priorities
• Health & Safety– OSHA– Local Fire - HazMat
• Legal– Liability– Fault– Duty of Care
• Insurance– Risk Management– Coverage
• Marketing– HazMat Suits + TV Crew = Bad
Ten Essential Elements Model Green Lease
Cleaning & Recycling
Model Green Lease
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© B. Alan Whitson, RPA 85Model Green Lease - 2010
Cleaning & Recycling
• Purpose:– Improve IAQ & Safety, Save Energy, Reduce Waste Stream
• Issues:– Tenant Education– Worker Training, Correct Equipment, and Purchasing Program
• Tools:– Effective Tenant Communications Program– Common Environmental Goal – Lease Clause– Building Rules & Regulations – Lease Clause & Lease Exhibit– Green Cleaning – Lease Exhibit
• Green Seal, Environmental Choice– Daytime Cleaning Program
© B. Alan Whitson, RPA 86Model Green Lease - 2009
Case Study
Joe Serna, Jr. BuildingSacramento, CA
Model Green Lease
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© B. Alan Whitson, RPA 87Model Green Lease - 2010
The Joe Serna Jr. Building – Calif./EPA HQ
• 950,000 Square Feet• $270 Million• 3,000 Calif. EPA Employees• EPA Energy Star
– Energy Star Rating 96– One of the most energy
efficient high-rise office buildings in nation
– 37.1 kBTU/SF/Yr.– Lighting load .69 W/Sq. Ft.
• USGBC LEED-EB Platinum• Recycling Program is a Profit
Center
© B. Alan Whitson, RPA 88Model Green Lease - 2010
How To Keep Waste From Becoming Trash
• Standard trash can is mixed paper recyclable picked up by janitors – no liners– 3,000 Liners/Day
$65,000 Year - Savings• 206 recycling centers located
throughout building• Managing the Waste
– Recycling White Paper Pays– Recycling Reduces Pick-Ups– Compactor Cuts Trash Volume– < 2 Pick-Ups per Month
Model Green Lease
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© B. Alan Whitson, RPA 89Model Green Lease - 2010
Daytime Janitorial Greens Bottom Line
• Janitorial Hours– 11:00 am to 8:00 pm– Night Utility Crew
• Instituted in 2001 Energy Crisis– 8% Energy Reduction– $100,000 Energy Savings
• Turnover Almost Zero• 70% Reduction in Complaints
– $120,000 Savings in Labor Hours
– Tenants Become Supervisors
Ten Essential Elements Model Green Lease
Building Rules & Regulations
Model Green Lease
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© B. Alan Whitson, RPA 91Model Green Lease - 2010
Building Rules & Regulations
• Purpose:– Guidelines for day to day operation and maintenance of building,
e.g., security, recycling, after hours entry, ban space heaters– Allows Landlord to adjust operations without amending Lease
• Issues:– Lease clause: “...shall at all times abide by and observe the rules
and regulations...”– Landlord may change with notice to tenant, and “...shall not be
inconsistent with the provisions of the lease”– Failure to comply can be a default by the Tenant
• Tools:– Rules & Regulations Lease Language and Exhibit
© B. Alan Whitson, RPA 92Model Green Lease - 2010
Rules & Regulations - Lease Exhibit
• Every office worker should have a copy Rules & Regulations or access to via Building's website
• Partial List of “Green” Issues– Ban energy-intensive devices,
such as space heaters– Recycling– Smoking– Pesticides & Chemicals– Cooking “Odors”– Living Creatures– Health Emergency
Model Green Lease
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Ten Essential Elements Model Green Lease
Fit-Out of Tenant Spaces
© B. Alan Whitson, RPA 94Model Green Lease - 2010
Fit-Out of Tenant Spaces
• Purpose:– Reduce environmental impact of Tenant Fit-Out & Churn
• Issues:– Construction Waste Management – Initial Fit-Out & Renovations– IAQ Impact– Churn & Adaptability to Future Needs– Restoration
• Tools:– Lease– Work Letter or Construction Letter– Contractor Rules & Regulations– High Performance Building Standards
Model Green Lease
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© B. Alan Whitson, RPA 95Model Green Lease - 2010
Contractor Rules & Regulations
• IAQ Construction Management Plan in place during build out and prior to occupancy
• Follow building’s green housekeeping practices
• Follow building’s low-VOC and IAQ practices
• Contractor to provide Material Safety Data Sheets (MSDS)
• Provide contractor information to meet building’s green purchasing policy
© B. Alan Whitson, RPA 96Model Green Lease - 2010
High Performance Building Standards
• Modular Power/Voice/Data • Moveable Walls & Glazing• Paperless Drywall• Carpet Tiles• High Performance Ceiling Tile• Sound Masking• Long Life Low Mercury Lamps• Lighting Controls
– Occupancy Sensors– Daylighting– Dimmable Ballasts
• “Flex-Head” Sprinklers
Bank of America Tower – New York, NY
Model Green Lease
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Ten Essential Elements Model Green Lease
Tenant Manual & Development Guidelines
© B. Alan Whitson, RPA 98Model Green Lease - 2010
Tenant Manual & Development Guidelines
• Purpose:– Inform tenant how to get the most out of their space and building
• Issues:– Explain sustainable feature and benefits, procedures and
operating parameters in non-technical terms to Tenant and Tenant's employees
– Provide insights on how to maximize the building's design, systems, and building standards to create a high performance and sustainable workplace – Continuity of design intent
• Tools:– Tenant Manual – Day to Day Operational Issues– Development Guidelines – Tenant Fit-Out
Model Green Lease
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© B. Alan Whitson, RPA 99Model Green Lease - 2009
Implementing theModel Green Lease
• New Buildings & Major Renovations• Existing Buildings
© B. Alan Whitson, RPA 100Model Green Lease - 2010
New Buildings & Major Renovations
• Internal Education– Audience
• Listing Broker• Property Manager• Construction• Legal• Lender
– Message• What's Different• What's the Same• What are the Benefits
• Marketing– Differentiate Your Building– Sell the Benefits– KISS
Model Green Lease
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© B. Alan Whitson, RPA 101Model Green Lease - 2010
Existing Buildings
• Develop Action Plan– Useful Tools
• Energy Star• GBI/ BOMA Go Green• LEED EB• Model Green Lease
• Analyze Costs & Benefits– Market Driven Issues– Economic Value Added– Understand Tenant’s WIIFM
• Develop Implementation Plan– Tie to Asset Management Plan
• Timing – Exit Strategy• Budget, Rebates & Incentives
– Tenant Communications Plan
© B. Alan Whitson, RPA 102Model Green Lease - 2010
Existing Buildings
Recycling ProgramDaytime CleaningHigh Performance Building Standards
Building Rules & Regulations
Environmentally Preferred Purchasing
Transition From Net to Gross Lease FormatEnergy Efficiency Upgrade – Tenant SpaceContractor Rules & Regulations
Energy Efficiency Upgrade – Base BuildingRetro Commissioning/Energy Star
Green Cleaning
NewTenants
ExistingTenants
Behind theScenes
Model Green Lease
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© B. Alan Whitson, RPA 103Model Green Lease - 2010
The Bottom Line
1. Greening your lease is possible right now, regardless of your situation or marketplace
2. Benefits exceed the costs, in the short and long-term
3. ENERGY STAR and LEED certification are not obligatory –But ...
4. High performance must be a part of your culture
5. Constant monitoring, preventive maintenance, and continuous improvement are key to success
6. Effective tenant communication is vital
© B. Alan Whitson, RPA 104Model Green Lease - 2010
Corporate Realty, Design & Management Institute4850 SW Scholls Ferry Road, Suite 203Portland, OR 97225 503.274.7162www.squarefootage.net
B. Alan Whitson, RPA949.238.9380 AWhitson@squarefootage.net
ModelGreenLease
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Faulty Assumptions Plague Too Many Green Lease Blogs B. Alan Whitson RPA Every day I get a Google Alert on green leases, which I dutifully read and then click on the various twits, blogs and websites listed in the alert. Sometimes there is a well researched nugget. Sadly, the typical article is riddled with misconceptions, faulty assumptions, and over simplification of the commercial leasing process. Too often, the authors failed to grasp building operating practices, real estate economics, or the nuance of negotiating a lease. Six years ago, many considered it revolutionary when I wrote the Ten Essential Elements of a Green Lease. The 10 elements were based on using the right rent structure, appropriate technology, performance standards, coupled with measurement and verification to create a financial incentive for green buildings rather than the some platitude about saving the planet. Some still believe that copying a little language from a LEED reference guide into an existing lease document will create a green lease. While, this may give a lease a green tint, it does not result in a green lease. I’m aware of attorneys who’ve invested countless hours tweaking existing leases with riders in the hope of crafting a green lease. This additive approach can result in some small improvement but it usually does nothing more maintain the status quo which is not sustainable. The Model Green Lease Task Force concluded early on that the best approach was to start with a clean sheet of paper, and a clear set of goals: remove the split financial incentive, reward landlords for superior operational and environmental performance, and provide tenants with an environmentally responsible and productive workplace. Let’s exam five building
operating issues and see how the language in a green lease and a bad lease differ. 1. Energy This is a simple case of follow the money. Only real estate taxes top energy as the largest operating cost for an office building. The key to controlling and reducing energy use in an office building is for the landlord to profit from doing so. Tenants have minimal financial incentive to reduce energy consumption. Of a tenant’s total cost of doing business; people account for 80 percent, rent which includes energy is 8 percent. Energy alone accounts for only 0.6 percent of an office tenant’s total cost of doing business. Given current energy costs and usage patterns, if a tenant did reduce energy use by 40 percent, the savings would not be sufficient to buy every employee a daily cup of coffee at Starbucks. Even if this did happen it’s doubtful that a tenant would see any of energy savings, since the pro rata share allocation method spreads the savings over the total rentable area of the building.
Under the Model Green Lease a landlord is responsible for all energy costs up to the energy allowance. This creates a powerful financial incentive to seek out energy savings and to keep the building in top condition. This encourages a whole building approach to energy management and using the appropriate technology such as the lighting system installed in the New York Times Buildings. The building code in New York limits lighting to 1.1 watts per square
...adopting the structure of the Model Green Lease can cut energy use by 30 to 50 percent over comparable buildings.
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foot. The lighting system used in the Times Building has reduced lighting energy to 0.38 watts per square foot. This equates to a combined energy savings from lighting and cooling of $1.00 per square foot. From the tenant’s side the use of sub-meters brings over allowance energy use to the forefront very quickly. How you may ask? Somebody within the tenant’s organization will have to budget for it. Also if excess energy use or after hours charges are billed to individual department’s P&L, those responsible for that P&L will scrutinize that expense closely. Experience has shown a 30 percent reduction in over allowance and after hours use after installation of sub-meters. Engineering analysis shows that adopting the structure of the Model Green Lease can cut energy use by 30 to 50 percent over comparable buildings. Green Lease Modified Gross Lease with Expense Stop or Base Year; Realistic Energy Allowance for tenants and sub-metering for tracking each tenants energy use, and separate sub-meters for high energy uses such as server rooms; Control actual building operating hours Bad Lease Net Lease, Pro-rata Share Allocation of Operating Cost promote the status quo 2. Operating Performance A few years ago the National Institute of Science and Technology did a survey of 100 office buildings and found that half of them were taking in less than the minimum amount of fresh air as required by ASHRAE 62.1. Moreover, 25% of the buildings were operating at less than half the minimum air intake rate. Over-ventilation was just as rampant as under-ventilation. Both can have a negative impact on tenant comfort, indoor air quality and energy use. Comfortable temperatures and indoor air quality are the second and third most important issues for
tenants trailing only rental rate. Yet these two issues are the greatest source of tenant dissatisfaction with a building. Green Lease The lease should state that the building’s HVAC system will be operated in compliance with ANSI/ASHRAE Standard 55, Thermal Environmental Conditions for Human Occupancy and ANSI/ASHRAE Standard 62.1, Ventilation for Acceptable Indoor Air Quality. Including this reference in the lease provides a measurable performance metric. Bad Lease Terms like “reasonable” or “comparable with other class “A” office buildings located in the area” are use to describe how a building will be operated. 3. Recycling, Daytime & Green Cleaning, Green Pest Management What’s not to like about this? Recycling can turn a cost center into a profit center. Daytime cleaning cuts energy use from 4 to 10 percent and you get a cleaner building with fewer complaints. Green cleaning and green pest management protect the health and safety of the janitorial staff and tenants. Tenants won’t object unless you make the process too complicated. A major bank in Canada decided to introduce a corporate recycling program. When the program was rolled it out, they could not find a branch bank in their system that didn’t already have a recycling program started by the employees. Green Lease Appropriate Lease Clauses, Lease Exhibits, Building Rules & Regulations such as those in the Model Green Lease make implementation a straightforward task. Bad Lease If the lease does not address these topics – It’s not a green lease.
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4. Annual Environmental Performance Report The idea of the annual environmental performance report comes from management guru Peter Drucker, “What gets measured, gets managed.” When the Model Green Lease Task Force first raised the idea of the Annual Report, there was some resistance. California and a growing number of jurisdictions are now requiring an annual report. Since the landlord operates the building and pays all the bills it is reasonable for the landlord to collect, analyze and report performance data to the tenants along with the annual operating budget and annual expense reconciliation. After the Model Green Lease was released, Andy Fuhrman and Alan Edgar of OSCRE asked the Model Green Lease Task Force to work with the OSCRE Green Lease Advisory Board to set up the data exchange standards. This newly released standards makes the collection, analysis and reporting of information quick and easy for the landlord and provides transparency to the tenants. Green Lease A lease clause with appropriate lease exhibit detailing the information the landlord will provide the tenant each year on operating hours, energy use, renewable energy, water use, and recycling. Bad Lease If the lease doesn’t require an annual report – It’s not a green lease 5. Interior Construction The initial fit-out of tenant space coupled with the subsequent tenant turnover can have a significant impact upon the environment and indoor environmental quality of a building. The interior construction should comply with requirements for low VOC content, dust control, proper material handling and storage, and recycling of construction waste
whether the tenant is seeking certification such as LEED for Commercial Interiors or not. Green Lease Tenant Workletter Agreement and the Contractor Regulations contain language that defines sustainable product requirements and construction practices to be used in constructing the tenant improvements. Bad Lease If the lease and its exhibits do not specify the sustainable product requirements and construction practices to be used in constructing the tenant improvements – It’s not a green lease. This Spring the Model Green Lease Task Force will release the latest update to the Model Green Lease including three new tenant workletter agreements. The update will be sent to all registered users. The Model Green Lease is available for purchase online at www.squarefootage.net Alan Whitson is President of the Corporate Realty, Design & Management Institute; and Chair of the Model Green Lease Task Force. Click on www.squarefootage.net for a seminar schedule, Alan’s speaking schedule, books, CDs, software, and Model Green Lease template. You can contact Alan Whitson at awhitson@squarefootage.net This originally appeared in Alan Whitson’s Turning Green in Gold column in OfficeInsight on March 8, 2010.