CHICAGO, March 20, 2023 – As real estate occupiers face increased pressure to lower their carbon footprint, and investors are greening their portfolios, green leases can benefit both landlords and tenants while also serving to decarbonize real estate. JLL’s (NYSE: JLL) new Green Leasing 2.0: Bridging the owner-occupier divide to deliver shared ESG value report outlines the considerations building occupiers and owners should include at all stages of the relationship to incorporate sustainability.

The U.S. market could reap $3.3 billion in annual cost savings if every leased office building implemented green leases, as estimated by the Institute for Market Transformation (IMT). And, with 1.2 billion square feet of office space and 2.5 billion square feet of industrial space experiencing a lease expiration before 2030 in the U.S. alone, according to JLL research, an emphasis on collaboration and communication will be increasingly important. JLL’s Decarbonizing the Built Environment research also found 42% of investors and 34% of occupiers already implement green clauses in their current leases, and implementation is set to double with an additional 37% of investors and 40% of occupiers planning to enact green lease clauses by 2025. Integrating an extended vision for decarbonization through the full life cycle of a building’s lease will help both occupiers and owners track toward sustainability goals.