New “Tenant Star” Law Expected to Spur U.S. Jobs, Investment, Energy Efficiency

Roundtable Weekly

November 17, 2016

(Washington, D.C.) – The Real Estate Roundtable commends today’s enactment of widely bipartisan “Tenant Star” legislation, which is expected to encourage optimum energy efficiency in leased commercial spaces and increased investment and job creation, while helping the environment. President Obama signed the bill into law today at an Oval Office ceremony.

The new law authorizes the U.S. Environmental Protection Agency (EPA) and the U.S. Department of Energy (DOE) to jointly create a voluntary “Tenant Star” program that will provide national branding recognition to landlord and tenant teams who design, construct and operate highly energy efficient leased spaces in commercial buildings. “Tenant Star” — modeled after the long-running ENERGY STAR program for whole buildings — will be the first government-endorsed label in the United States to recognize leased spaces within commercial buildings for sustainable design and operation.

The “Tenant Star” bill arrived at President Obama’s desk today for his signature after the Senate and House approved the bill by wide bipartisan margins over the last two months. Various federal agencies are now directed to conduct studies, gather data, and develop guidelines to implement the program over the next several years. RECPAC Mtg

“ ‘Tenant Star’ will align office tenants with their landlords to make smart, cost-effective investments in energy-efficient leased spaces. Broad adoption will save businesses billions of dollars on energy costs in the coming years and generate new American jobs in the energy efficiency field that cannot be exported,” said Anthony E. Malkin, chairman, president and CEO of Empire State Realty Trust, Inc. (NYSE: ESRT) and chairman of The Roundtable’s Sustainability Policy Advisory Committee (SPAC).

Roundtable President and CEO Jeffrey D. DeBoer called ‘Tenant Star” a “triple win that will spur the economy by creating jobs, enhancing energy security, and preserving our environment by cutting greenhouse gases.” He added, “The program will allow building owners to attract financiers, investors, and tenants in the increasingly competitive national and global markets for real estate.”

About The Real Estate Roundtable

The Real Estate Roundtable brings together leaders of the nation’s publicly-held and privately owned real estate ownership, development, lending and management firms with the leaders of national real estate trade associations to jointly address key national policy issues relating to real estate and the overall economy. Collectively, Roundtable members' portfolios contain over 12 billion square feet of office, retail and industrial properties valued at more than $1 trillion; over 1.5 million apartment units; and in excess of 2.5 million hotel rooms. Participating trade associations represent more than 1.5 million people involved in virtually every aspect of the real estate business.

About Empire State Realty Trust

Empire State Realty Trust, Inc. (NYSE: ESRT), a leading real estate investment trust (REIT), owns, manages, operates, acquires and repositions office and retail properties in Manhattan and the greater New York metropolitan area, including the Empire State Building, the world’s most famous office building. Headquartered in New York, New York, the Company’s office and retail portfolio covers 10.0 million rentable square feet, as of September 30, 2014, consisting of 9.3 million rentable square feet in 14 office properties, including nine in Manhattan, three in Fairfield County, Connecticut and two in Westchester County, New York; and approximately 731,000 rentable square feet in the retail portfolio. The Company also owns land at the Stamford, Connecticut Transportation Center that supports the development of an approximately 380,000 rentable square foot office building and garage.