Sustainability In Commercial Leasing

While it is customary to blame vehicles for contributing to our carbon footprint, buildings and the construction sector account for close to 40% of global CO2 emissions, compared to just 10% for vehicles. So, it is fitting to consider ways to reduce a building's carbon footprint. Things have come a long way since the first Canadian "green lease" was proposed by REALPAC in 2008, but we still have a ways to go. In that regard, Canada lags behind its European neighbours, where the European Climate Pact is helping set achievable goals to improve energy performance in existing buildings, and new targets for sustainability in new construction.

While cost concerns have been an impediment to creating more sustainable buildings, experience out of the European Union is that "green" buildings lease for higher rents, have less occupancy downtime, and ultimately have a greater value on sale. Many of today's top-rated tenants have environmental, social and governance ("ESG")