ULI’s Randall Lewis Center for Sustainability in Real Estate has now released the fifth and final installment of its premier primer on achieving net-zero-building carbon emissions through dynamic engagement between owners and tenants. The series explores practical strategies for reducing emissions at both the asset and portfolio levels—highlighting how all parties working together can drive meaningful emissions reductions across all aspects of real estate. Each primer focuses on a key area of cooperation that should be developed between owners and tenants to achieve net-zero goals:
- Taking Green Leases to Net Zero explores how green or net-zero lease language can establish clear, mutually beneficial expectations for both owners and tenants. These provisions foster transparency and alignment around energy efficiency and sustainability. Listen to the episode on CoreNet Global’s What’s Next Podcast here!
- Sharing Data to Achieve Net Zero discusses how data-sharing between tenants and owners can be leveraged to meet progressive benchmarks and strategize future overall reductions. This is especially important because of the growing demand from both investors and government regulators for whole-building data. Listen to the episode on CoreNet Global’s What’s Next Podcast here!
- Fitting Out Space for Net Zero highlights the unique opportunities that renovations present to reduce energy use and lower embodied carbon, particularly when repurposing materials during tenant fit outs. Commercial building interiors are often refitted every three to 10 years as new tenants move in, so aligning priorities with sustainability is essential during these construction periods. Listen to the episode on CoreNet Global’s What’s Next Podcast here!
- Behavior Changes to Achieve Net Zero emphasizes the importance of human behavior in reducing carbon emissions. This report shares strategies such as incentives, gamification, and “green nudges” to shift tenant and owner norms toward greater energy efficiency and sustainability. Listen to the episode on CoreNet Global’s What’s Next Podcast here!
- Harnessing Renewables to Achieve Net Zero makes the case for integrating renewables in buildings, including innovative technologies such as battery storage and grid-interactive functionality, to meet environmental goals and generate positive net profits. Podcast episode to come.
Strengthened by the lessons learned from real-world projects by both ULI Greenprint members and real estate experts, these primers provide a roadmap for stakeholders across the commercial real estate industry. Here are top 10 takeaways that both owners and tenants can focus on now to achieve net-zero-building emissions.
1. Tenants are a key piece of the net-zero puzzle.
Roughly 27 percent of a building’s operational emissions stem from occupier activities, and tenant spaces can account for more than half of a commercial structure’s total energy use. Yet many tenants might only focus on reducing their own business’s emissions, not that of the actual building. Achieving whole-building decarbonization requires strong alignment between landlords and tenants. While financial incentives and utility rebates can drive short-term progress, long-term impact hinges on transparency, shared values, and co-ownership of net-zero goals.
2. Relationships are essential.
A strong, ongoing relationship between owners and tenants can transform decarbonization from an abstract goal to a shared strategy. Regular communication, clear expectations, and feedback mechanisms help maintain alignment over time. Tools such as quarterly check-ins, building performance dashboards, and tenant surveys provide a reliable structure to build constructive relationships that can lead to even deeper collaboration.
3. Buildings don’t achieve net zero. People do.
An operational building is defined not only by its systems, but by its occupants. The International Energy Agency (IEA) has identified behavior change as a critical pathway to achieving net-zero emissions. Shifting appliance usage to off-peak hours or unplugging equipment when not in use can significantly reduce emissions. Landlords can reinforce these behaviors through thoughtful design—such as installing occupancy sensors—and by offering targeted incentives. When individual habits align with a building’s overall system performance, the collective carbon reduction can be substantial.
4. Owners and tenants can both win.
Energy-efficient and renewable energy strategies benefit all parties. For owners, these investments can enhance asset value, reduce vacancy rates, and improve resilience—ultimately increasing net operating income. For tenants, sustainability features should support a company’s own emissions targets, particularly in reducing Scope 2 emissions associated with the power grid. Reliable, renewable power not only cuts costs but also improves occupant comfort, well-being, and productivity. As tenant demand for climate-aligned buildings grows, sustainability becomes a competitive advantage for both stakeholders.
5. Achieving net zero is not solely a technical problem. It’s a trust problem.
Despite clear benefits, misaligned incentives often prevent owners and tenants from investing in renewable energy or energy efficiency. The “split incentive” dilemma arises when one party bears the upfront costs (e.g., owners install a solar array) while the other reaps the savings (e.g., tenants have lower utility bills). Green leases can help solve this disparity by incorporating cost-recovery clauses and billing mechanisms that generate trust and clarify benefits to both parties. Trust is further strengthened through clear data-sharing protocols, addressing tenant concerns about data usage, and incorporating transparency into the process.
6. You can’t manage what you don’t measure.
Energy and building performance data are foundational to achieving net-zero structures. Without accurate, shared data it’s difficult to set credible targets, monitor progress, or optimize building operations. Owners and tenants must work together to ensure that metering, sub-metering, and performance reporting systems are in place. In addition to supporting ESG compliance reporting and investor demands, the data allow both parties to identify inefficiencies, manage peak demand, and track emissions reductions over time.
7. Choose the path of least resistance.
Sustainable choices should be as easy as possible for occupants. Something as simple as turning off unused equipment can reduce emissions, but default behaviors are often shaped by building layout and design. Landlords can reduce this friction by integrating automatic controls, offering sustainability guidance, and rewarding tenant initiatives. Education and gentle nudges (such as signage or gamified energy-saving campaigns) can reinforce low-carbon habits. When tenants default to sustainable behaviors, participation in striving for net zero becomes effortless.
8. Tenant fit outs are the perfect opportunity.
Tenant spaces, and how they are constructed, can play a major role in both operational and embodied carbon emissions. Fit outs influence lighting, HVAC loads, and equipment efficiency—crucial factors that drive material-related emissions. Refitting a tenant space often happens every three to 10 years, and when done properly can contribute up to 60 percent of a building’s whole-life embodied carbon, making fit outs a unique chance to reduce a building’s lifetime emissions. Owners and tenants should collaborate early in the design process to prioritize efficient layouts, modular systems, and low-carbon materials.
9. The bottom line is the bill.
Sustainability drives financial performance. In addition to increasing property value, net-zero buildings typically result in lower utility costs. JLL’s 3-30-300 rule illustrates the financial hierarchy per square foot: $3 spent on utilities, $30 on rent, and $300 on payroll. Eliminating utility costs through high-performance design can yield immediate savings. In a net-zero building, that means saving $3/square foot. For tenants and owners alike, this improves operating margins while enhancing building appeal.
10. It’s not just about the zero.
Net zero is only one element of a high-performance building. Future-ready assets must also be resilient to climate risks and promote occupant health. Strategies that support resilience such as battery storage, passive cooling, and flood mitigation also improve a building’s reliability. Healthy building practices such as enhanced ventilation, biophilic design, and natural light can significantly improve tenant well-being and productivity as well.
ULI is hosting a webinar on all five primers on October 10, 2025, at 11 a.m. ET. The webinar will feature industry experts with real-world insights on each of these strategies. Register here!
