Landlord Collaboration for Retail Sustainability

Retailers operating in leased spaces often face unique challenges when implementing energy efficiency and sustainability initiatives. Unlike owned facilities, energy investments in leased properties frequently require coordination between tenants and property owners, which can create barriers to project approval and funding.

These barriers are often the result of split incentives, where landlords control building infrastructure while tenants pay energy costs. In these situations, projects that would otherwise deliver meaningful operational savings and environmental benefits can stall due to unclear responsibilities or competing priorities.

Retailers and property owners increasingly recognize that collaboration can unlock opportunities to reduce energy use, lower operating costs, and improve building performance. Through stronger landlord-tenant partnerships, retailers can accelerate sustainability initiatives while maintaining operational efficiency across their store portfolios.

Program Overview

To address these challenges, RILA has worked with retailers, property owners, and sustainability organizations to develop resources that help align incentives between tenants and landlords.

These resources provide guidance on:

• navigating landlord-tenant energy relationships
• identifying mutually beneficial sustainability investments
• improving communication between tenants and property owners
• developing lease structures that support energy efficiency projects

By sharing leading practices and real-world examples, the program aims to help retailers and landlords collaborate more effectively to implement sustainability initiatives across leased retail spaces.

Implementation Model Case Studies

H&M
Partnered with landlords, utilities, and solution providers to overcome the challenge that utility incentives for energy efficiency projects are often difficult for retailers to access when the landlord holds the utility account. Through this collaboration, H&M secured rebates for approximately 40% of its retrofit projects, saving roughly $2,500 per store annually.

Regency Centers & Trader Joe’s
Partnered to install a 253 kW solar photovoltaic system that offsets more than 65% of the store’s energy use, with no installation or maintenance cost to Trader Joe’s.

Whole Foods Market
Developed a portfolio-wide plan to deploy rooftop solar across approximately 100 locations, covering 25% of stores and warehouses. Standardized lease language with landlords helped enable the rollout.

Pyramid Companies (DOE)
Implemented green leasing practices at the Destiny USA mall to support energy efficiency improvements across tenant retail spaces.

Ulta Beauty (DOE / IMT)
Developed a robust tenant-led sustainability approach by aligning legal, construction, and sustainability teams to collaborate with landlords on efficient build-out standards and energy management practices.

Network Building Opportunities

Building strong relationships between tenants and property owners is critical for advancing sustainability initiatives across leased retail spaces.

Landlord-Tenant LinkedIn Group
A collaborative network designed to connect retailers, landlords, and sustainability professionals working to improve energy performance in leased retail spaces.

Retail Landlord-Tenant Contact List
Retailers and property owners can address many sustainability barriers through thoughtful lease structures and collaboration during the leasing process.

Leasing Strategies

Retailers and property owners can address many sustainability barriers through thoughtful lease structures and collaboration during the leasing process.

Sample Leasing Documents

Sample Premises Questionnaire
Examples of how retailers can align the premises questionnaire with corporate sustainability strategies, goals, and policies.

Sample Letter of Intent (LOI)
Examples showing how sustainability considerations can be incorporated into early leasing negotiations.

Sample Work Letter
Examples demonstrating how construction and build-out agreements can support sustainability initiatives.

Sample Lease Language

Green Lease Guidance & Sample Language (IMT)
Guidance outlining green leasing best practices and sample language retailers or landlords can incorporate into leases.

Green Lease Language Examples
Sample clauses designed to support energy efficiency and sustainability improvements in leased retail spaces.

Retail Rooftop Unit (RTU) Lease Language (DOE)
Example lease clauses addressing rooftop HVAC equipment operations, maintenance, upgrades, and replacement.

Net Zero Energy Lease (RMI)
Colorado’s first net-zero energy lease provides a model for landlords and tenants seeking to achieve net-zero energy buildings.

Resource Guides and Toolkits

These tools help retailers and property owners identify energy efficiency opportunities and develop collaborative strategies to improve building performance.

Landlord-Tenant Energy Partnership Efficiency Toolkit
Designed to help organizations prioritize energy savings opportunities and accelerate sustainability projects across leased retail spaces.

Industry Insights

Industry collaboration has helped identify common barriers and opportunities for improving energy performance in leased retail properties.

Industry Insights: What Retailers Need to Unleash Energy Efficiency and Sustainability Success
A collaboration between IMT, RILA, and Connex that brought together retail landlords and tenants across North America to explore shared challenges and solutions.

Overcoming the Six Biggest Hurdles of Better Energy and Sustainability Performance in Retail Spaces
Summary findings and recommendations were developed from the collaboration workshops.

Recognition

Industry recognition programs highlight organizations leading the way in sustainable leasing practices.

Green Lease Leaders (IMT)
Recognizes companies and brokerage teams that successfully implement green lease language into new or existing leases.

Why Landlord Collaboration Matters for Retail Sustainability

Retailers operate a significant portion of their stores in leased spaces, making landlord collaboration essential to achieving industry sustainability goals.

When retailers and property owners work together, they can unlock opportunities to improve building performance, reduce operating costs, and accelerate the adoption of energy efficiency technologies.

Through stronger collaboration and clearer financial alignment, retailers and landlords can implement sustainability projects that benefit businesses, communities, and the environment.