The Greener Side of Commercial Real Estate Investment

Increase Your Profits With Sustainable Commercial1.Energy Efficient Lighting Systems
Building2.High Performance Glazing
In 2007 green building practices are gaining popularity3.Ventilation Systems
at an accelerated rate. The American consciousness4.Water Efficiency Systems
of environmental issues has changed and the financial5.Green building materials (i.e. recycled materials or
benefits of building, living and working green arematerials from renewable resources)
becoming more attractive to residential andIncentives for Commercial Green Building
commercial real estate investors. Green designIncreased profitability is the number one reason
spotlights a variety of environmental and humancommercial real estate investors are moving towards
health concerns.more green building and design features. According to
- Reduction of exposure to toxic materialsBuilding Momentum: National Trends For High
- Conservation of non-renewable energy andPerformance Green Buildings, a report prepared by
materialsthe US Green Building Council for the US Senate
- Minimization of the ecological impact of buildingCommittee on Environment and Public Works, "Design
- Utilization of renewable energy and recycled orfeatures that enhance energy efficiency and indoor
earth-friendly materialsair quality are cost effective strategies for improving
- Protection of local water, air, soil, plants and animalsworker productivity and product quality. An increase
- Support of transportation alternatives includingof 1 percent in productivity (measured by production
walking, bicycles, mass transit and alternative fuelsrate, production quality, or absenteeism) can provide
Many people are also surprised to discover that insavings to a facility that exceeds its entire energy
2007 green design and building often costs the samebill".The report provides examples such as Lockheed,
as building more traditional designs. According to thean engineering development and design facility in
July 2007 issue of Today's Buyer's Rep, in an articleSunnyvale, California and the Postal Sorting Facility in
entitled Housing Trends Worth Watching by editorReno, Nevada. Lockheed built a high performance
Julie Collins, a recent survey by the Nationalgreen facility and experienced a 15% decrease in
Association of Home Builders (NAHB) shows thatemployee absenteeism that recuperated the extra
97,000 homes have been built and certified by greencosts of their facility within the first year. The Postal
building programs around the U.S. This is a 50%Sorting Facility in Reno experienced a 6% increase in
increase from the last survey conducted in 2004. Thethe number of items sorted per hour when an
Santa Monica Green Building Program, reports,alternative lighting system was installed.
"Buildings have impacts on health as well as theIn addition federal, state and local governments are
environment. It is estimated that half of allnow also offering incentives to commercial builders
commercial buildings suffer from air quality problems,and investors interested in a green approach.
resulting in poorer health of workers and otherAccording to the Building Momentum report "public
occupants".and private entities offer financial and regulatory
Green Building and Design Options for Commercialincentives. New York, Maryland and Oregon offer tax
Property Investmentscredits for LEED (Leadership in Energy and
In the commercial real estate industry economics andEnvironmental Design) certified buildings. Portland (OR)
financial profit play an important part in green building.and Seattle (WA) offer grants for energy modeling,
Businesses, corporations and investors are more likelycommissioning and related costs." The report
to invest in green building if they know it will increasecontinues to explain that, "Arlington County (VA) links
their bottom line. According to Commercialpreferred zoning considerations for LEED projects.
Investment Real Estate Magazine, "When analyzingSanta Barbara (CA) and Scottsdale (AZ) are some of
green economics, commercial real estatethe first jurisdictions to offer expedited permit
professionals should consider long-term operating andreviews for buildings with certain high performance
maintenance costs. These factors are beginning tofeatures. Tax credits and other incentives are part of
affect leases, insurance rates, loans, and other realbroader green building assistance programs offered
estate practices as tenants, owners, banks, andby a growing number of state and local governments
communities recognize energy efficiency's value". Asacross the country." Green building programs have
technology advances and improves the performancebeen developed in California, Colorado, Maryland, New
of lighting, heating, cooling and water systems theYork, Pennsylvania and Wisconsin. As the green
operating costs of buildings will decrease. This willbuilding and commercial investment trend continues
attract tenants and increase the value of yourtax incentives will increase and green building and
commercial property to future investors. Whendesign will continue to pay for themselves in more
building or purchasing a green commercial design lookways than one.
for the following: