Leasing office space is no exception. Space marketers should recognize that tenants are not necessarily running to lease an office principally because the building is green. They are weighing the value of the entire package, and landlord's representatives should use that to their advantage.

In the next decade, all new projects will be environmentally friendly. Until then, the most prominent green projects are becoming the benchmark for other similar developments. At 321 North in Plantation, for example, the mixed-use master planned community is one of only a few in the country participating in the LEED for Neighborhood Development pilot program, which evaluates communities in their entirety for adopting green principles.

It is apparent that consumers demand green. They want what is new and upgraded and progressive. And it does not seem to matter what their motives are, whether financial or environmentally conscious, because the trend is so new that those implications are still difficult to prove. For marketers of green product, it works in their favor that many are banking on the notion that leasing green will indeed positively impact their bottom line.

Before examining the marketing of green property, it is necessary to look at the costs involved in building that way. Construction costs increase 4% to 6% on the front end, but some of this is returned to the developer in the form of lower operating expenses. For example, utilities, water, and sewer become more efficient and therefore less expensive, with the savings passed on to tenants by way fewer rent hikes.

The marketing approach is not vastly different than with other office product. However, the verbiage is more exciting because it alludes to new and forward thinking, and allows for an emphasis on cost savings. For example, a state-of-the-art building with energy efficient systems is sexier with the term "LEED certified" thrown in. What distinguishes green property from traditional office space in marketing is that it does not initially cost more to lease-there is no premium to rent environmentally friendly product-and, more importantly, it will cost the tenant less over the long term.

When marketing green product, there are features and services that tend to "sell" the property more effectively. At 321 North, the "built ins" are enhanced by things like an onsite filtration pond that allows the developers to re-circulate water, alleviating the reliance on the city's resources, and roof insulation. The natural vegetation on the roof uses less energy so there is a reduced need to cool the unit interiors.

In this stalled economy, where businesses are not moving or closing their doors, commercial leasing is affected. As a result, it is a bit difficult to see the real effect of leasing green on the bottom line because the economy has taken center stage. Yet that does not detract from the fact that marketers can still gain a competitive advantage if they can market your space as environmentally friendly.

Tenants are more selective than ever, and they are looking for best price. If they can save money long term, the deal becomes more attractive. Green property allows that advantage, so sell it.

The views expressed here are those of the author and not of Real Estate Media or its publications.

Michael Coletti is director of operations at Plantation, FL-based US Capital Holdings. He can be reached at [email protected].