Can employee productivity provide the business case for green leasing? An analysis of sustainability measures worth pursuing

Laurie S. Rothenberg

Corporate Real Estate Journal, 2011, vol. 2, issue 1, 7-17

Abstract: As companies increasingly consider environmental sustainability in their choice of leased space, they need to prioritise which sustainability measures to accommodate. Rather than pursuing certified ‘green’ space without any further enquiry, tenants need to consider which green measures the landlord has implemented and whether they have the financial payback required to justify any green premium. To date, most companies recognise the savings related to operating efficiencies in green buildings, but they also need to consider the financial benefits of sustainability measures that improve employee health, productivity and retention. Sick building syndrome, caused by indoor air pollutants, can result in eye and nose irritations, headaches, difficulty concentrating and acute respiratory illnesses that cause employees to take sick leave or work less efficiently. Rather than relying on the ‘feel good’ or intangible benefits of improvements addressing these symptoms, this paper explores the business case underlying specific measures and translates them into dollars. By improving indoor air quality and the employee experience, sustainable measures such as pollutant source control, ventilation and daylighting can result in savings of over US$25 per square foot. Through carefully drafted language in their leases, work letters and other documentation, companies can preserve these savings and the benefits of leasing a green property.

Keywords: employee productivity; absenteeism; business case; sustainability; indoor air quality; green building; LEED (search for similar items in EconPapers)
JEL-codes: R3 (search for similar items in EconPapers)
Date: 2011
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