With the increase in the number of green office buildings in Houston, green leases are now a more viable option. Today there is over two million square feet of green building space in Houston, with approximately six million additional square feet will be built in the next two years. These numbers reflect the amount of square footage available in buildings that are registered with The Leadership in Energy and Environmental Design (LEED) program. LEED is a third party certification program and the nationally accepted benchmark for the design, construction and operation of high performance green buildings. Additionally, over 75 buildings in Houston have achieved the Energy Star rating.

A green lease includes provisions that encourage the landlord to compete for tenants by designing, building and managing comfortable, energy efficient buildings. Specific green lease terms might include:

1.       Definition of Operating Costs Since lower energy consumption is the primary objective, a green lease may specify minimum performance criteria for the buildings heating, cooling and lighting systems.

2.       Energy Star Rating Require the building to achieve and maintain the Energy Star Rating.

3.       Green Cleaning Specifications An addendum to the lease that specifies eco- conscious materials and procedures to be used in cleaning, janitorial and pest control.

4.       Tenant Construction Agreement This exhibit identifies sustainable products and designs to be used for tenant improvements and build out.

5.       Green Common Areas This clause would require that the landlord bring the buildings common areas into compliance with sustainable building practices (i.e. natural lighting, water conservation, etc.).

6.       Longer Lease Terms Longer lease terms mean less re-construction and tenant build out, which means less waste and reduced resource requirements (i.e. new furniture, walls, etc.).

These are just a few examples of clauses and exhibits that may be included in a green lease. Specific lease language will vary depending on the extent of a buildings ecologically friendly design or renovation.

Bottom line: Although a green lease requires a commitment to be more sustainable from both the landlord and tenant, the environmental and financial benefits are tangible and expected to increase as more tenants seek space in green buildings.