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Revamping green leases is critical to driving decarbonizationCollaboration between building owners and tenants essential to reaching sustainability goals CHICAGO, March 20, 2023 /PRNewswire/ -- 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. "Amid the current energy crisis and with increased pressure to meet sustainability goals, collaboration between the owner and occupier at an asset level to incorporate energy efficient solutions is critical. Existing leases, both green and non-green, do not allow this and a new model is needed with increased transparency and data sharing," said Guy Grainger, JLL global Head of Sustainability Services and ESG. "Green Lasing 2.0 will increase operational efficiency and lower costs will realize the mutual value of greener buildings to all stakeholders." With only seven years remaining to halve emissions in the built environment and meet the Paris Agreement scenario, real estate leaders need to do the following:
JLL's own corporate portfolio, representing 381 sites across 52 countries, integrates sustainability across the entire leasing landscape to deliver on ambitious net-zero targets. More information on JLL's sustainable business approach and services can be found here: https://www.us.jll.com/en/solutions/sustainability-services. "JLL has embarked on a transformative approach to integrate sustainability into our corporate real estate strategy across the entire leasing landscape to deliver on ambitious net-zero targets," said Grainger. "Green leases are an important tool to help us meet our ESG goals with the added bonus of driving efficiency. Our office fit-outs use 15% less energy than a standard code design for example, representing annual cost savings of over $2 million across our portfolio." About JLL JLL (NYSE: JLL) is a leading professional services firm that specializes in real estate and investment management. JLL shapes the future of real estate for a better world by using the most advanced technology to create rewarding opportunities, amazing spaces and sustainable real estate solutions for our clients, our people and our communities. JLL is a Fortune 500 company with annual revenue of $20.9 billion, operations in over 80 countries and a global workforce of more than 103,000 as of December 31, 2022. JLL is the brand name, and a registered trademark, of Jones Lang LaSalle Incorporated. For further information, visit jll.com. Contact: Gayle Kantro
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