Green Building

By
Commercial Real Estate Agent with Coldwell Banker Commercial TradeMark Properties

           "As ‘green' becomes law it could result in forced obsolescence and write-downs for non-green real estate assets along with substantial capital expenditure obligations to meet the new standards," said one Ernst & Young analyst.  Ernst & Young has "Radical Greening" on their Strategic Business Risk: 2008 - The Top 10 Risks for Business report.  Ernst & Young says "We use the term radical greening to apply to the increasing environmental concerns which could be the result of a wide range of pressures - from the voluntary world of corporate social responsibility - to hard regulatory and economic necessity. 

            CoStar recently released the Green Study that shows some noteworthy information on ‘green' buildings here in the United States.  They teamed up with the USGBC by adding LEED to their commercial real estate database in 2006 and then the EPA with Energy Star in 2007.  The study found that the occupancy rates in Energy Star buildings have an advantage of 360 Basis Points over non-Energy Star buildings in the 1st quarter of 2008.  The buildings achieve higher rental rates of $2.40/SF and higher sales prices of $61/SF.  The CoStar study showed that occupancy rates in LEED buildings have an advantage of 410 Basis Points over non-LEED buildings.  LEED buildings attain rental rates of $11.33/SF higher than non-LEED buildings and a difference in sales price of $171/SF. 

National Real Estate Investor conducted an online survey with invitations sent to 24,943 subscribers consisting of Corporate Real Estate users, Commercial Real Estate Developers, and Government Officials.

            Tom Bisacquino, President of NAIOP, says "The cost of energy is growing exponentially, and many feel that energy costs will continue to rise.  So the business case for developing green is getting stronger and stronger." He also says, "I personally feel that within the next three to five years, the definition of Class-A office space will be green. If a building is not green, it won't be classified as Class-A."

            Rick Fedrizzi, President, CEO, and founding chair of the USGBC says "The average return on investment in a green building is 20% - and that's a number that's relevant to any building owner."

Green building is not another fad, it is here to stay.

Comments (2)

Cathleen Rodgers
North Texas GMAC - Desoto, TX
e-Pro, ASP

Have you gotten your EcoBroker Certification yet?? I am working on mine so I was just wondering

May 28, 2008 08:30 AM
Adam Brett
The Adam and Eric Group - Fullerton, CA
The Adam and Eric Group, Fullerton's Finest

I belive the green movement will be a big part of our economy.  There will be a lot of products we will be incorporating into new construction - and retrofitting.

May 28, 2008 08:41 AM