According to a special report from the National Association of Realtors green building is no longer considered an option in commercial buildings, but viewed as a requirement because much of corporate America has already embraced sustainability.

At least 70% of the corporations in the Business Roundtable, nearly all of which are Fortune 1000 members, have made commitments to ad more green to their business practice.

Indeed, a McGraw-Hill/Siemens survey found that 60 percent of real estate executives surveyed saw value in sustainability and 28 percent expected to see value within three years.

Another study revealed that factors such as rising energy costs, concerns about aging infrastructure, government regulations and tax deductions for energy retrofits and shareholder pressure from groups like the Carbon Disclosure Project are major reasons corporations are going green.

Of special interest to commercial landlords is the fact that tenant demand for green is on the rise as well, with that demand being greatest among large corporations that have committee to green practices over the past few years and are now reviewing their strategies for real estate leasing and acquisition.

Yet even though some commercial lenders have made billions of dollars in construction loans for LEED certified projects during the past two years, determining the precise economic value sustainability brings remains as much of an art as a science. Even given the increasing inventory of green buildings, too few have changed hands, which makes it difficult for appraisers find comparable sales when assessing value.

Part of the value that tenants who rent green are seeking is increased worker productivity and health, which cannot be quantified into real estate appraisals, though green features that provide a hedge against skyrocketing energy costs obviously add to resale value.

NAR, whose Washington, D.C. headquarters is LEED certified, offers online resources for commercial Realtors and that include a Field Guide to Commercial Green Buildings.

Tags: commercial real estate, green building, green commercial real estate, green office buildings

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