subject: Commercial Real Estate Is Finding Leed A Great Way To Get 'greener' Returns [print this page] Commercial estate is benefiting from the 'Green Movement' in many different ways. One of the biggest trends is the LEED certification program. LEED stands for the Leadership in Energy and Environmental Design. It is a set of standards developed by the United States Green Building Council defining what it means to be 'Green' in environmentally responsible construction.
LEED certified buildings are designed to use less water and power and minimize the building's negative impact on the environment. Some things that can make a huge difference can be using landscaping native to the area to minimize water usage for landscaping, installing energy efficient windows and door to minimize heat and cold loss.
While large projects at government buildings, like Arizona Game and Fish Department Headquarters in Phoenix and the Salt Lake City Main Library in Utah, have aggressively sought LEED certification, many commercial projects are not. When a large commercial tenet is renting, it is not always an easy task to invest money in the long-term sustainability of their rented building, because it doesn't always contribute to their bottom line. A landlord doesn't always see why they should invest money in a program when it doesn't contribute to their bottom line, because it wouldn't raise the amount of rent they collect. However, more utilities and the government are offering rebates and incentives that when combined are substantial.
The ongoing savings of energy and water add up as well. Some businesses show a return of three dollars for every dollar they put into a LEED project. These savings can be especially large in places like Surprise, AZ, a suburb of Phoenix. Arizona and California are two states that benefit greatly from energy and water reductions because of the high cost of utilities and living.
Investors would be wise to notice this trend and aggressively pursue LEED certifications for their properties. Properties that are being built and retrofits will be big contributors to profits when selling upgraded properties. Desert conserving landscaping can be beautiful and tasteful. Scottsdale, Arizona has done a great job showing how amazing this style of planting can become. Manicured rock beds and pruned cacti line the roadsides. While there are green lawns, they normally accent rather than dominate the landscape.
Commercial projects using LEED certification are the way of the future, according to industry experts. Being able to update older properties to these new standards will be important as these standards become the norm. Companies and individuals who can see the way to change for the better will be well placed to ride this amazing wave.
