Retailers, developers, and landlords are seeking to green their retail facilities to realize operational gains, demonstrate environmental stewardship and capture increasingly conscientious consumers. To help unify their efforts, the U.S. Green Building Council (USGBC) will publish its new Green Retail Guide: Integrating LEED into your Leasing Process later this year.

The Green Retail Guide, which will supplement the two new LEED Retail rating systems launched earlier this year, will help tenants and landlords bridge the divide that has often hindered the development of high performance multi-tenant commercial buildings. The most notable barrier is commonly referred to as the “split incentive,” a result of the triple-net lease structure used in multi-tenant retail properties. A triple-net lease creates an incentive for the retailer to lower its operating costs, as any utility savings accrue directly to the tenant or are passed through as part of Common Area Maintenance expenses. However, the developer or landlord is oftentimes responsible for initial construction costs, as well as ongoing capital expenses.

Oftentimes, the economic barriers that exist in multi-tenant green buildings can be overcome by the development of a collaborative landlord – tenant relationship, and by formulating a lease that outlines the environmental goals of the parties, the behaviors needed to meet these goals, and properly allocating the costs and benefits of green buildings. In order to be successful, green building investments and savings must be quantifiable and qualified by both parties. A green lease ensures transparency throughout the duration of the relationship, and provides both parties legally binding accountability that sustainability goals and standards will be adhered to.

The Green Retail Guide will provide retailers and their service providers a practical resource that helps integrate green strategies into the way that retail space is selected, leased, built-out and operated. The publication will include best practices in the retail real estate market with specific guidelines set forth by the USGBC and its Leadership in Energy and Environmental Design (LEED) Green Building Rating System. Furthermore, the guide offers suggestions on how retailers and landlords can facilitate education and collaboration that leads to more awareness about sustainable practices and energy savings.

Green Building Services, Inc., a sustainable development consulting firm from Portland, Oregon, is the lead author of the Green Retail Guide, while Regency Centers, a national owner, operator and developer of grocery-anchored and community shopping centers, and Ecoxera, a green business strategies and communications firm, are contributing authors. 

The guide will be available for sale later this year at www.usgbc.org/publications.