The acceleration of ESG programs is penetrating the commercial real estate industry, and it is fueling an increase in green leases. In the 2021 Sustainability report from RICS, 40% of respondents have noted an increase in green lease adoption.
A green lease is an agreement between the landlord and the tenant to meet certain environmental goals. The terms can either encourage sustainability standards or they can be contractually dictated. The concept helps both companies and landlords meet ESG requirements, which often can’t be accomplished without participating from both parties.
