GREEN LEASES AND MALL PATRONAGE

Abstract

This study investigates how the implementation of green leases can contribute to an increase in overall patronage to a mall, and whether a shopper’s education level and ethnicity will influence their perceptions of the need and benefits of green leases in retail malls. With the heightened awareness of environmental issues worldwide, there are more innovations to combat climate change, with the green leasing policy being one of them. A green lease is the latest innovation that has been developed, and it has been proven in many developed countries to effectively reduce the amount of greenhouse gas emissions from the building sector. Other benefits associated with the implementation of a green lease include utility bill savings and a healthier indoor environment, which also boosts employee productivity and aids in staff retention. Shoppers were surveyed from two malls that have implemented green leases as part of their sustainability initiatives – Jem and 313@Somerset, and their results were analysed. It is found that most shoppers are more incentivized to increase patronage to malls with green leases, and that their perceptions of the associated benefits and urgency to address environmental issues are influenced by their characteristics. Time and effort should be invested into researching how the implementation of green leases can benefit all three parties involved in retail malls – the landlord, tenants and shoppers, and how green leases can gradually become a norm in Singapore’ leasing market.