Item 4a: Green leasing practices for occupiers (CBRE)

Report
GREEN LEASING PRACTICES FOR
OCCUPIERS
November 20, 2013
DOJ LEASE PROCUREMENT SCENARIOS
Project # 3DC0398
October 31, 2013
Presented to:
Presented to:
GREEN LEASING PRACTICES FOR OCCUPIERS
Overview
 Greening of Commercial Real Estate has been largely a landlord trend with new
construction projects targeting LEED Certifications and existing buildings undergoing
retrofits to achieve LEED EB status or similar BOMA designations.
 Trend toward “green” leasing by occupiers began in the mid 2000’s, gaining real
momentum by 2007.
 Tenants have benefited due to more sustainable and efficient building operations and
lower operating costs.
 Landlords have now developed “green” leases.
 Tenant’s participation in sustainable leasing practices has been limited to the selection
of a more sustainable building (along with the associated operating procedures relating
to cleaning, recycling, etc.) and the implementation of LEED interiors.
 Recession caused corporations to rethink strategies due to significant cutbacks in
budgets and corporate downsizings
 Approach to green leasing typically consistent with corporate values.
CBRE | METROPOLITAN WASHINGTON COUNCIL OF GOVERNMENTS|
GREEN LEASING PRACTICES FOR OCCUPIERS
GREEN LEASING PRACTICES FOR OCCUPIERS
Corporate Strategies
Client
Current Situation
Green Leasing Program
Large Telecom
 Sustainability is a top priority. Program
started in 2011. Since 2013 program
requirements enforced in Tier I properties.
Lease language is based upon BOMA
guidelines.
 Three Tier approach to Green Leasing Program includes:
 Site selection- LEED/Energy Star rankings
 Sustainable lease terms based upon BOMA green guidelines.
 PJM has incorporated sustainable construction practices and
materials
 Operations includes reporting and monitoring of energy and
waste management
 LL’s must cooperate with waste and recycling tracking,
diversion rates
 Energy reporting and audits – 3rd party vendors retained for
audits on larger sites
Large Tech
 Focus is on selection of buildings that carry
industry designations. No specific lease
schedules imposed on third party landlords
 Program focus on the selection of Green Buildings
 Sustainable practices in the design and construction of interiors
Large Telecom
 Program initially developed in 2007 focused
on cost savings and PR benefits of green
buildings.
 Premium cost of LEED buildings led to little
payback.



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
Large Bank
 Strong interest in sustainable practices but
business units are driven by P&L impact of
decisions which favors lease renewal.
 New site selection compares industry designations (LEED/Energy
Star)
 Green practices are incorporated in interior design and construction
Multinational
Industrial
Conglomerate
 Client is continually ranked as one of the
“greenest” companies in America. Client
driven program to incorporate green initiatives
into the leasing process starting with the RFP.
 RFP provisions relating to sustainable practices
 Green questionnaire
 Lease exhibit pertaining to Green Lease Guidelines
Have built a program around existing leases and landlords
Install utility meters where possible
Maximize sustainability at minimum cost
Business deal still comes first
To be a success, program must have a senior level sponsor
CBRE | METROPOLITAN WASHINGTON COUNCIL OF GOVERNMENTS|
GREEN LEASING PRACTICES FOR OCCUPIERS
GREEN LEASING PRACTICES FOR OCCUPIERS
Corporate Strategies
Motivations &
Benefits
 Operational
cost savings
 Corporate
commitment to
the
environment
 Public
Relations
value
 Improved
indoor
environment
 Increased
workforce
productivity
Key Components
Best Practices
Tools
 Operating Costs
 Building certifications (LEED,
Energy Star, BOMA)
 Water & electricity usage
 Maintenance & monitoring
 Waste management &
recycling
 Tenant fit-ups (including
construction waste)
 Alternative transportation
(bicycles, EV’s)
 Landscaping
 Cleaning
 Must include the ability to
monitor and control utilities
and building operation
 Selection of buildings based upon
certifications (matrix or scorecard)
 Selection of buildings based upon
public transit/alternative transit
 Education and communication are
key components within
organization – employees must
understand and embrace the
benefits
 Requires commitment and a
corporate sponsor. Selection of
green buildings not always the low
cost alternative.
 Can be implemented around an
existing lease portfolio.
 Development of a green leasing policy
stating corporate goals and objectives
with respect to green leasing
 Green leasing RFP
 Building Due Diligence Scorecard –
when comparing alternative locations
 Develop tenancy profiles – minimum
building requirements based upon
user group, tenant size, location, term.
Profiles in the form of a matrix (single
tenant/multi- tenant,
small/medium/large)
 Green lease
clauses/provisions/remedies/audit
Going Forward:
The next wave of workplace enhancements
is focused on the employee. The Delos
Wellness program (part of CBRE
Workplace360) considers not only
sustainable leasing practices, but also
building features and enhancements that
improve the employee experience (water,
air, light, sound ergonomics, structure).
CBRE | METROPOLITAN WASHINGTON COUNCIL OF GOVERNMENTS|
GREEN LEASING PRACTICES FOR OCCUPIERS
GREEN LEASING PRACTICES FOR OCCUPIERS
Federal Requirements in Lease

Energy Star 75

EPA.Gov
•
Resource Conservation and Recovery Act (RCRA)
•
Environmentally preferable producers
•
Certified forest products

Recycling & Conservation Waste Management

Water Conservation
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•
Plumbing fixtures
•
Landscaping
Lighting
•
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F8, T-5 or LED fixtures
LEED Base Building
•
LEED NC Silver
•
LEED CI
•
LEED EB
Other: Paints, Carpeting, Cleaning Products, Paper Products
CBRE | METROPOLITAN WASHINGTON COUNCIL OF GOVERNMENTS|
GREEN LEASING PRACTICES FOR OCCUPIERS

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