MEP CA AB 1103

Green Leasing

Facility energy use changed dramatically during the COVID-19 pandemic. Green leases are on the rise and becoming the new standard in commercial real estate.

Leases reveal the priorities of landlords and tenants. Reviving tenant occupancy during the pandemic remains to be an issue for landlords—more and more businesses are moving towards remote work and whether this shift is permanent remains to be seen.

Many companies are considering more virtual work and shifting from large, centralized offices to smaller ones across cities and regions. To keep up with the changing renter’s market, many real estate companies are needing to adjust lease priorities, including a safe indoor environment, lower overhead costs, and greater sustainability commitments.

Traditional leases have become a barrier to lowering building operating costs. Many leases required buildings to maintain the same temperature standards during COVID as when the buildings were occupied. And due to the nature of most leases, building operators don’t have the ability to make building operation improvements due to clauses and lack of communication with tenants. When building operators tried to reach out to tenants at the start of the pandemic, many found out that individuals listed on the leases were no longer employed at the tenant company.

To meaningfully address these issues of occupant health and safety and operational strategy, green leases are a good place to turn for adaptable leases that incentivize energy and operational improvements and stronger landlord-tenant relationships. Replacing traditional leases with this modern approach calls out efficiency as a goal and allows for mutually beneficial improvements.

Green leases have been standardized by the U.S. Department of Energy’s Better Buildings program to establish high performing and health buildings. The Green Lease Leaders program provides a framework for implementing green leasing in a way that promotes sustainability and health goals while demonstrating leadership. Case studies of green leases show that they work for companies ranging from retail to data centers in their effort to reduce the risks of climate change while saving money and being more flexible, creative, and collaborative.

Now, at a critical moment in commercial real estate, green leases offer a competitive advantage and allow real estate companies and tenants to thrive in the post-pandemic era.

To learn more about green leases and the Green Lease Leaders program, visit and

Posted by Maximum Energy Professionals "MEP", a mechanical engineering firm located in Torrance, CA. Sustainability Services, ENERGY STAR utility benchmarking and award certification, California AB802 Compliance, City of Los Angeles EBEWE Compliance, Utility Data Management Software dashboard, ASHRAE energy audits, LEED, energy conservation/green Mechanical-Electrical-Plumbing systems and equipment design. Call us at 310-782-1410 or visit our website at