Misaligned ESG investment incentive between landlord and tenant.
ESG · Global
Misaligned ESG investment incentive between landlord and tenant.
Landlord pays for energy-efficiency capex; tenant captures the operating-cost savings via opex pass-through. Resolved through green-lease provisions, performance-based rent kickers, or shared-savings agreements.
Split incentive is part of the esg vocabulary that institutional Class A occupiers, landlords, and advisers use across Global markets. Understanding it correctly affects how you read lease documents, model occupancy economics, and benchmark deal terms across cities. Class A Atlas tracks regional variation alongside the global standard so cross-border occupiers can translate quickly.