Commercial, Energy Efficiency - July 5, 2016
Kilroy Realty recognized for green leasing at 2 commercial properties
Kilroy Realty was recently recognized by the U.S. Department of Energy for its role in the execution of two "green leases," which help commercial building owners and tenants save on energy costs.
The Los Angeles-based real estate investment trust earned two "team transaction" awards from Green Lease Leaders, a program established by the DOE's Better Buildings Alliance and the nonprofit Institute of Market Transformation. This year, Green Lease Leaders represented portfolios that totaled 350 million square feet, bringing the cumulative floor area of all Green Lease Leaders to more than 1 billion square feet.
, and using the lease as a powerful tool to help both parties achieve energy savings,” Dr. Kathleen Hogan, deputy assistant secretary for energy efficiency at the DOE said in a news release regarding the awards. "We are excited to recognize the leadership of these companies for spurring collaborative partnerships and helping make green leasing a standard practice in the marketplace.”
The team transaction awards that Kilroy received were new this year, and created to recognize deals where all parties come together to push the boundaries of energy efficiency in commercial space.
In the large transaction category, IMT recognized Kilroy's lease with Dropbox Inc. for its LEED Platinum 333 Brannan St. building in San Francisco, and CBRE Group and Allen Matkins were also recognized for their work on the transaction. In the small transaction category, Kilroy received recognition for its lease with YuMe Inc. at its Energy Star certified Westside Media Center campus in Los Angeles. LA Realty Partners and Allen Matkins were also recognized for their work on that transaction.
"We are thrilled to build on the green leasing efforts that IMT recognized in 2014 when we joined the inaugural class of Green Lease Leaders,” said Sara Neff, Kilroy's senior vice president of sustainability. "The Team Transaction Award allows us to highlight the important work of our tenants, brokers, and legal team in our green leasing efforts.”
A green lease, also known an energy-aligned lease, breaks boundaries set by traditional leases, helps owners and tenants lower their operating costs, and opens the door to deeper savings on utilities. IMT estimates that green leases have the potential to reduce utility bills by up to $0.51 per square foot, or 11% to 12%, which would provide more than $3 billion in annual cost savings to the U.S. office market.