Federal Realty Investment Trust was named a Green Lease Leader, Landlord Gold Recognition, at the BOMA International Conference in San Antonio, TX. Now in its fifth year, Green Lease Leaders was established by the Institute for Market Transformation and the U.S. Department of Energy’s Better Buildings Alliance to recognize leading-edge companies and real estate practitioners who break down barriers to high-performance buildings by revolutionizing the lease to incorporate energy efficiency and sustainability.
According to a prepared statement, Federal Realty is proud to be among those to receive this designation in 2018. “Federal Realty is honored to be recognized as a 2018 Green Lease Leader. Our green leases are an essential component of our business operations and have helped us integrate our sustainability goals into the way we operate our properties, providing our tenants with additional opportunities to pursue their own environmental objectives,” said Ron Becker, CRX, CSM, Director of National Property Operations and Sustainability at Federal Realty.
He adds that “Through this aligned partnership, we minimize our impact on the environment with initiatives like solar photovoltaics and water use reduction while generating operational cost savings that benefit both the landlord and tenant. Proudly, our sustainability commitment flows throughout our organization as we work side by side with our tenants to help realize their goals; the results are a win for our tenants, our customers and Federal Realty.”
Green leasing, also known as “energy-aligned” or “high-performance” leasing, is a powerful and growing real estate trend that provides a win-win framework for landlords and tenants to invest in and benefit from energy efficiency and sustainability improvements—standard leases have historically been a roadblock to greater investment and action on efficiency. A green lease agreement guarantees that environmental measures are taken by landlords and tenants, and it acts as both a catalyst and safeguard for achieving goals and savings for both parties. Green leasing has also been shown to unlock efficiency improvements that help lower operating expenses, increase return on investment, and lead to more healthy and efficient spaces that are attractive to employees and customers, among other benefits.
Since 2015, green leasing has been widely adopted throughout Federal Realty’s portfolio. The company’s leases contain clauses that primarily focus on shopping center operations and maintenance issues such as chemical use, indoor air quality, energy efficiency, water efficiency, recycling programs, exterior maintenance programs, and systems upgrades to ensure that landlord and tenant have established, accountable environmental standards. Building on the green lease program, Federal Realty has invested over $50 million in its solar photovoltaic arrays consisting of a total of more than 18MW, which is expected to generate 22,100,000 kWh annually, when combining both operational and development projects currently in progress. The solar investments reduce electrical demand from the grid and greenhouse gas emissions and also provides tenants with an option to purchase renewable energy directly from the source. This investment along with innovative social engagement such as can be seen at Pike & Rose where you can find the Mid-Atlantic region’s largest active rooftop farm, further exemplifies Federal’s commitment to the communities and people we serve.
“As building owners, developers, tenant companies, and other real estate decision makers strive to keep up with evolving financial and environmental pressures, leading-edge firms are using the lease as a powerful instrument to create higher-performing buildings that not only save energy and money but also provide healthier work environments,” said Cliff Majersik, Executive Director for IMT. “IMT and DOE’s Green Lease Leaders program has made a significant market impact over the past five years by raising the bar for green lease agreements and putting a spotlight on the growing number of innovative companies that use their leases to achieve ambitious energy, sustainability, and business goals. We are thrilled to recognize this year’s impressive leaders who are pushing the envelope on building performance and energy-aligned leasing.”