Commercial building upgrades that are win-win for tenants and landlords
t3 is a joint project between CitySmart and Incorp Property Solutions Group.
t3 is a clever new approach to commercial building upgrades. This sustainability initiative helps employers create more productive and green-friendly workplaces and makes upgrades (e.g. LED lighting) financially attractive for landlords. t3 solves the “split incentive” problem of a typical lease, which frustrates tenants wanting upgrades and gives landlords little incentive to make improvements.
How it works
The tenant allows the owner to share in the savings created by building asset upgrades (e.g. cheaper bills through more efficient LED lighting). The t3 Initiative provides the framework for both parties to agree to upgrade works, including a ‘connection incentive’ for landlords in the form of ongoing tenant contributions to help pay for the completed works. t3’s proposed landlord/tenant split of the savings is 80/20.
- Tenants are signalling to landlords that they care about improving workplace productivity, worker conditions and the company’s environmental credentials.
- Landlords can secure a cash flow improvement mid-lease that will increase the building’s value, plus they can complete building upgrades at a lower cost.
- Visit www.t3initiative.com.au
- Contact CitySmart on 07 3007 7000