Going Green

By Melissa Securda

Yoda.  Pickles.  Frogs.  All green things.  Class A Office Space.  Warehouses.  Manufacturing Facilities.  Also green. 

We hear a lot about "going green" lately, and it’s not just hippie-speak anymore. The concept of sustainable development, or “green buildings,” has taken off in the commercial real estate industry. In 1987, the Brundtland Commission for the United Nations defined sustainable development as “development that meets the needs of the present without compromising the ability of future generations to meet their needs.” 

Green standards are based on this definition and the U.S. is catching up to efforts already in place in other parts of the world. The global push toward sustainability is evident through the efforts of organizations such as the U.S. Green Building Council and EnergyStar, GoGreen Canada, BREEAM in the UK and Green Star in Australia.

The U.S. Green Building Council is moving the market in the U.S. toward the tipping point for green. Its LEED (Leadership in Energy and Environmental Design) Rating System provides standards for green building development which promotes sustainability in building design and construction. Since 2000, LEED has expanded to include all property types. States and local municipalities are offering tax incentives for green buildings, and in some cases, faster permitting is available for LEED certified buildings. 

Now that standards are in place and roughly 200 LEED Gold Certified buildings have popped up across the U.S., these properties tout higher rents, faster absorption and lower tenant turnover.  What are you seeing in your market? What happens if developers don’t build high-performing buildings? Do they run the risk of early obsolescence and will tenants demand space in more efficient properties?