Los Angeles-based Kilroy Realty Corp. recently revealed that the Institute for Market Transformation has awarded it the Green Lease Leaders Gold designation at the annual 2018 BOMA International Conference & Expo in San Antonio, TX. Green Lease Leaders, now in its fifth year, was established by IMT and the U.S. Department of Energy’s Better Buildings Alliance to recognize leading-edge companies and real estate practitioners that break down barriers to high-performance buildings by revolutionizing leases to incorporate energy efficiency and sustainability.
This year, Green Lease Leaders represented portfolios that totaled 717 million square feet, bringing the cumulative floor area of all Green Lease Leaders to over 1.8 billion square feet.
“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. “We are thrilled to recognize this year’s impressive leaders who are pushing the envelope on building performance and energy-aligned leasing.”
For the first time this year, Green Lease Leaders is recognizing two levels of achievement—Silver and Gold. The Silver level recognizes establishment of foundational policies and business practices that encourage reduced energy and water consumption in leased spaces, while the Gold level builds on Silver level achievements, and recognizes execution of green leases and energy-efficient tenant fit-outs. KRC is one of fourteen winners at the Gold level and there are nine winners at the Silver level.
“At KRC, we are always pushing ourselves to meet the highest green leasing standards,” says Mike Schmitt, Vice President, Leasing and Operations Counsel at KRC. “Earning the Institute for Market Transformation’s highest honor is a great opportunity for us to showcase the work of our teams, our tenants and our brokers in driving value through green leasing.”
A green lease, also known as an energy-aligned lease, 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. IMT estimates that green leases have the potential to reduce utility bills that would provide over $3 billion in annual cost savings to the U.S. office market.