Reality Check: Debunking Industry Myths on Leased Net-Zero Energy Buildings

This fact sheet by the Rocky Mountain Institute (RMI) challenges four primary myths regarding net-zero energy (NZE) leased buildings, asserting that they can be more profitable for developers and more beneficial for employees than traditional buildings. Using the Boulder Commons project as a case study, RMI demonstrates that NZE buildings can achieve higher occupancy rates, rental premiums, and increased employee productivity. The document also outlines a four-step process for transitioning existing buildings to NZE operation and promotes the NZE Leasing Best Practice Guide to scale adoption in the commercial sector.

• NZE-leased buildings can offer higher profitability for developers compared to standard buildings, with potential increases of up to 19 percent for those who retain the property and 17 percent for those who sell immediately.
• Energy-efficient buildings can command a market value premium of approximately 13 percent, driven by lower capitalization rates, lower operating expenses, and higher anticipated rent. Additionally, ENERGY STAR-certified properties have shown rent premiums of 3.5 percent based on research of over 21,000 U.S. rental buildings.
• Tenants in NZE buildings benefit from improved employee productivity and satisfaction, which can increase by 6–16 percent due to factors like natural daylight and thermal comfort. This is a significant financial driver because employee salaries cost companies 100 times more than energy.
• While easier in new construction, existing buildings can achieve NZE operation through a four-step process: gathering and sharing energy data, setting goals with tenants, recommissioning the building, and implementing energy efficiency and solar PV upgrades via tenant pass-through financing.
• Commercial buildings represent a significant energy challenge in the U.S., accounting for 36 percent of electricity consumption, with 52 percent of these buildings being leased.

APA

RMI (2018). Reality Check: Debunking Industry Myths on Leased Net-Zero Energy Buildings. https://rmi.org/resources/debunking-industry-myths-leased-net-zero-energy-buildings/

Chicago

RMI. Reality Check: Debunking Industry Myths on Leased Net-Zero Energy Buildings. 2018. https://rmi.org/resources/debunking-industry-myths-leased-net-zero-energy-buildings/.

Wikipedia

{{cite report |author=RMI |title=Reality Check: Debunking Industry Myths on Leased Net-Zero Energy Buildings |date=24 January 2018 |url=https://rmi.org/resources/debunking-industry-myths-leased-net-zero-energy-buildings/ |access-date=17 August 2026 |via=Climate Insights Directory}}

BibTeX

@techreport{rmi2018reality, author = {{RMI}}, title = {{Reality Check: Debunking Industry Myths on Leased Net-Zero Energy Buildings}}, institution = {RMI}, year = {2018}, month = jan, url = {https://rmi.org/resources/debunking-industry-myths-leased-net-zero-energy-buildings/}, urldate = {2026-08-17}, note = {Indexed by Climate Insights Directory} }