Comments by:
Thomas Bisacquino
President
National Association of Industrial & OfficePropertiesWashington, DC

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(To read more about Real Estate Media's GreenInitiative, please click here.)

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It seems that Real Estate Media's 2007 Green Initiative isjust what the market needed. Some 64% of the respondents to lastweek's Feedback Poll say that green figures more heavily in theirprofessional practice than it did last year. Commentator Bisacquinoisn't surprised at all. And he doesn't brook any hesitation overcost. The market will regulate that as the trend grows. But let himexplain:

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"Unquestionably, this industry is doing more green developmentthis year than last year. From all of my travels, observations anddiscussions with anyone in the development business--regardless ofproduct--everyone is either currently doing green, stepping up theamount of green they're doing or taking a real hard look at it.

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"Expense is clearly an issue, but two things are happening. Thecost to develop green is dropping. There's still a premium, butit's dropping. Of course, the cost depends on the product you'relooking at, and there's a big difference between green industrialand green office. There are different dynamics involved, but thebottom line is that it's like any other industry. As more peopledevelop green, costs drop. And, in terms of product types, moreindustrial owners and developers will be looking to move towardgreen.

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"In all, people are investing seriously in green. First andforemost, it's the right thing to do; people are concerned aboutthe environment. Second of all, there's a demand for it. Moretenants are demanding that their space be green, so it helps youmarket the building. And if you hold the building for any period oftime, there's a payback. So the building actually doesn't cost you,but in fact it saves. It's clearly a trend that's here to stay, andit's growing at an exponential rate."

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John Salustri

John Salustri has covered the commercial real estate industry for nearly 25 years. He was the founding editor of GlobeSt.com, and is a four-time recipient of the Excellence in Journalism award from the National Association of Real Estate Editors.