- June 22, 2022
Eight quick ‘Green Features’ wins when negotiating commercial terms on behalf of your client.
info@realteq.com
At REALTEQ we have developed innovative software that simplifies, streamlines and digitalizes the process of a commercial real estate negotiation around the world. As a tenant representative, you are at the forefront of ensuring Green Building Standards are being negotiated when identifying a new commercial unit. This article gives you a brief insight into the must-haves and quick wins when entering into negotiations.
In random order, we will be addressing the following non-exhaustive list:
- Green Building Certification
- Green Construction Materials
- Energy Saving and Net-Zero
- Operational efficiencies
- Policy and Performance
- Regulatory Requirements
- Green Rental Premium and Brown rental discount
- Technology
Green Building Certification
Throughout the world there are different green building certifications that are commonly used like LEED, BREEAM, WELL, BEAM PLUS, BCA amongst others. It is crucial to understand the difference between the different certifications and what it means to your client. All certifications focus on diverse features resulting in different long-term implications.
Green Construction Materials
Construction industries account for almost 40% of annual global carbon emissions. When negotiating on new (pre-construction) developments on behalf of your client, a particular focus on the correct construction materials will benefit your clients’ ESG program.
Energy Saving and Net-Zero
Renewable electricity will be beneficial to your client, and it is crucial to get clarification on the landlord’s program during the proposed future lease-term. Furthermore, submetering, data and reporting on electricity, gas and water consumption should be negotiated and compared amongst buildings as well.
Click here to find out how REALTEQ automates, shortens and simplifies the entire negotiation process for you and incorporates all ‘Green Features’ mentioned in this article.
Operational efficiencies
Building Management Systems should be in place in order to maximize efficiencies for heating, ventilation & air-conditioning. There should be limitations in place to avoid wasteful behavior. In addition, the landlord should have energy efficient lights installed as well. If the landlord is responsible for the waste management, the exact program should be obtained and compared.
Policy and Performance
Landlords should have stringent ‘Green’ policies and performance measurements on ESG in place, but also be open to (bi-)annual improvements and conversations with current tenants to improve the overall building performance.
Regulatory Requirements
It is important to ensure that potential new building locations comply with the regulatory requirements regarding ‘Green’ features at the moment of lease execution, however more importantly the landlord needs to be forward thinking and open to improving the building during the lease term of your client. Clients easily stay 10-20 years at the same location, and change is constant.

Green Rental Premium and Brown Rental Discount
Compare apples to apples when reviewing the different buildings with your client. It is crucial to paint a detailed picture why certain buildings are starting to demand a green rental premium to others. Don’t only focus on current key-factors but also focus on future ones that will be implemented during the lease term.
Technology
Technology, data and monitoring will ensure that your client can be at ease during the lease term, and that the ‘Green’ features of their current commercial space will benefit in their overall ESG company program and not obstruct them in achieving their company’s goals.
In this article we have highlighted eight ‘quick wins’ to focus on when starting the negotiation process on behalf of your client for their next commercial unit. During our next article we will focus on how REALTEQ automates all these ‘Green’ features into the overall negotiation process, and how does one compare the different certification systems globally and more importantly individually rated (or non-rated) assets on behalf of your client.
Click here to find out how REALTEQ automates, shortens and simplifies the entire negotiation process for you and incorporates all ‘Green Features’ mentioned in this article.