Greening leases: Do tenants in the United Kingdom want green leases?

The UK market for energy service contracts in 2014–2015

“…In the US when they tried to take into another segment it failed miserably… 12 Several interviewees highlighted the potential of alternative policy initiatives and business models to overcome these barriers-as summarised in box 3. These ideas draw upon recent experience in the USA and Australia (Dixon et al 2008;Fawkes 2013;Kim et al 2012;Sayce et al 2009;Supple 2010) and were considered by one interviewee to represent: '…a huge flowering of innovation and change that will completely eclipse the EPC market in time….' 13 However, the UK has yet to develop an equivalent of PACE or MEETS; green leases have attracted only limited interest (Dixon et al 2014), and a policy initiative based upon on-bill financing (the 'Green Deal') was not a success (Rosenow and Eyre 2015;Rosenow and Sagar 2015).…”

The evolution of green leases: towards inter-organizational environmental governance

“…Whereas traditional leasehold relationships are frequently characterized as adversarial, distant and distrustful, some greener leasing practices attempt to foster better communication between the parties. Interest in green leases and leasing is growing, and articles on them have been published in a number of countries in the last decade, including the UK (Bright & Dixie, 2014;Hinnells et al, 2008;Langley & Hopkinson, 2009), Australia (Roussac & Bright, 2012;Woodford, 2007), Sweden (Lind, Bonde, & Zalejska-Jonsson, 2014), Singapore (Chua, 2014), the US (Kaplow, 2009;Oberle & Sloboda, 2010), Canada (Sayce, Sundberg, Parnell, & Cowling, 2009), and 20 countries across Europe (Duquesne, 2011). This paper uses five case studies to investigate the evolving role of 'green leases' in the environmental governance of tenanted non-domestic property in the UK and Australia.…”

The Quadruple Bottom Line: Tenant Views of Corporate Responsibility in Green Office Buildings

“…Furthermore, trends are beginning to indicate that smallscale single-issue sustainability efforts are no longer considered as socially acceptable as they have been. This trend has been leading to a re-evaluation of the tenant-landlord relationship, in which tenants need more power in negotiating terms such as lease length and building features (Hamilton, Lim, and McCluskey, 2006;Sayce, Sundberg, Parnell, and Cowling, 2009). Hebb, Hamilton, and Hachigian (2010) note that institutional investors are becoming progressively more interested in commercial buildings that have displayed a commitment to environmental, social, and governance factors, such as reducing their environmental footprints, managing their relationships with key stakeholders (e.g., employees, customers, suppliers, community members, etc.…”

“…This absorption of costs by the landlord can make it difficult for tenants to be overly concerned with their own energy savings, but many have started banding together and demanding revisions to lease structures. However, for many tenants, the concept and primary components of a green lease are murky (Sayce, Sundberg, Parnell, and Cowling, 2009). Our aim is to address this concern through a survey of tenants' understanding of the perceived beneficiaries of the fruits of office real estate leases.…”