Landlord and Tenants: Driving Energy Efficiency in Leased Spaces
Landlords and tenants must work together to break down barriers to deep energy efficiency projects in leased buildings, says Cara Carmichael, Senior Consultant at the Rocky Mountain Institute. The biggest barrier is the “split incentive” in which the landlord pays for energy upgrades but the tenant pays the energy bills. Carmichael stresses that the parties must work together to overcome this impediment and realize mutual cost savings. She also sees potential to double the efficiency gains seen in typical energy savings performance contracts by looking beyond HVAC, control and lighting retrofits. She advocates building envelope improvements, occupant engagement strategies, whole-building modeling and integrated solutions that are not part of traditional energy upgrade projects.