Shorenstein Properties Joins Brokers and Companies in Receiving Top Honors For Using The Lease to Slash Energy and Water Use in its Buildings.
SAN FRANCISCO, JUNE 3, 2015 – Shorenstein Properties was named a 2015 Green Lease Leader at the U.S. Department of Energy’s (DOE) Better Buildings Summit in Washington, DC last week. The recognition was established by the Institute for Market Transformation (IMT) and the DOE Better Buildings Alliance to recognize property owners, tenants, and brokers who are effectively using the lease to drive energy and water savings in commercial buildings—offering substantial business and environmental benefits.
Green Lease Leaders signed leases representing 415 million square feet this year, with the cumulated square footage now totaling 800 million square feet.
“Lease provisions that address barriers to resource conservation and pollution prevention benefit all parties” said Jaxon Love, Sustainability Program Manager for Shorenstein. “These mechanisms save money for landlords and tenants, improve building performance, and facilitate regulatory compliance – not to mention the positive environment impacts.”
Shorenstein earned the Green Lease Leader title based on national lease provisions addressing:
- Capital improvements that result in energy savings
- Tenant submetering
- Energy information sharing between tenant and landlord
- Building performance certifications, including ENERGY STAR and LEED
- Green construction standards
Shorenstein is committed to sustainability for the benefit of its properties, tenants, and employees, as well as the communities in which the company operates and, since 2008, has reduced energy use by 16.2% and cut carbon emissions by 14.8%.
Among the company’s recent accomplishments:
- The Global Real Estate Sustainability Benchmark’s (GRESB) highest rating – Green Star. GRESB is an industry-driven survey for assessing the sustainability performance of investment portfolios.
- LEED certified property totaling 15 million square feet, with the majority certified at the Gold level.
- Realized $500,000 in annual energy cost savings that will avoid 1,800 metric tons of carbon dioxide per year – the equivalent of taking 400 cars off the road.
A green lease encourages collaboration to take action to improve efficiency, saving tenants and building owners on average, 10-20 percent each month on a building’s energy and water bills. A study released by IMT last week showed that green leases could deliver nearly $3 billion in annual savings for the U.S. office sector alone.
“Because of this recognition program, brokers, landlords, and tenants now have a blueprint for writing leases that remove impediments to efficiency and align interests so landlords and tenants both benefit from improving building performance. IMT and the Better Buildings Alliance are proud to see that many of today’s Green Lease Leaders are using the lease transaction to lay the foundation for working together to boost sustainability on a major scale,” said Cliff Majersik, Executive Director for IMT.
Historically, real estate owners and tenants have had difficulty integrating sustainability into the lease process due to tension between owners and tenants over responsibilities and cost-sharing arrangements. The Green Lease Leaders program is helping to shine a light on replicable solutions that can be employed by others to get past this split incentive.
“Today I’m pleased to announce the continued success of the Green Lease Leaders program,” said Dr. Kathleen Hogan, Deputy Assistant Secretary for Energy Efficiency at DOE, during a presentation at the Better Buildings Summit. “This effort is showing that cooperation on energy efficiency is no longer just a niche practice.”
About Shorenstein Properties LLC
Founded in 1924, Shorenstein Properties LLC is a privately-owned real estate firm active nationally in the ownership and management of high-quality office properties, with offices in San Francisco and New York. Since 1992, Shorenstein has sponsored eleven closed-end investment funds with total equity commitments of $7.9 billion, of which Shorenstein committed $648.5 million. Shorenstein uses its integrated investment and operating capabilities to take advantage of those opportunities which, at the particular time in the investment cycle, offer the most attractive risk-adjusted returns. Investments have included ground-up developments, asset repositionings and stabilized assets; investment structures have included asset acquisitions, mezzanine loans, preferred equity investments and structured joint ventures. These funds have invested in properties totaling 56.7 million square feet in transactions with a gross investment value in excess of $13.4 billion.