3/6/2011

Green Office Space Leasing

"A growing number of corporate real estate executives say they are willing to pay more to lease green office space and that they consider sustainability issues when making decisions about locations, according to recently released research from CoreNet Global and Jones Lang LaSalle."  Read the Original Article at http://www.greenbiz.com/news/2011/02/10/more-companies-now-willing-pay-extra-green-office-space

One of the financial benefits for the LEED Platinum Signature Centre was that it was100% leased prior to the completion of construction.  Though the project achieved a LEED-CS Platinum rating and one of the office spaces achieved a LEED-CI Platinum rating the lease rates were more in line with standard market rates.  It was difficult to determine if the building tenants were willing to pay a premium for the building's green features in comparison to the surrounding office space because of the age and type of competing space.  The developer did realize a 2% premium on the capital market rate upon sale of the building compared to average cap rates at the time.  According to the Colorado State University -  Real Estate Center as many as 5% points can be gained for green real estate.

If you take in to account increased lease rates, lower operating costs, resulting in a better Net Operating Income and an improved capital market rate, the investment in sustainable building technologies has a quantifiable return on investment.