Sustainability at Harvard

Maximum Service, Minimum Rent? Being Green Can Help

In the private property sector, commercial tenants pay market rent and are responsible for their own utilities. Harvard Real Estate Services (HRES), however, is bound by federal guidelines to set “break-even” rents. HRES rents are equal to costs, which include maintenance, operations, and utilities. Therefore, both HRES and the tenants have a stake in keeping those costs down.

The Service Level Agreement (SLA) defines the relationship between HRES and their University tenants. The agreement covers building rules and regulations, move-in/move-out procedures, and the services HRES provides. Among those services, utility rates are the least predictable. HRES does all it can to operate buildings as efficiently as possible, but the tenant behaviors affect energy consumption too. The SLA is an ideal vehicle for formalizing a joint commitment to conservation.

In 2008, the Service Level Agreement was updated to include a section on green initiatives. The agreement now declares that “University Tenants will make every effort to participate in HRES’ sustainability initiatives by reducing environmental impacts.”

The SLA goes on to list specific actions that tenants can take to reduce waste, purchase sustainable products, and conserve energy. The actions are inspired by the LEED for Existing Buildings rating system and common-sense best practices.

As stated in a HRES newsletter article about break even rents, “We all want to be 'green,' but reducing energy use means being more broad-minded about your 'comfort zone.' Our collective efforts can help reduce energy consumption and greenhouse gas emissions, which will benefit the planet and your bottom line.”