GreenRenterGlobeSt.com

GlobeSt.com: From a commercial property perspective,how would you assess the importance of being green? Is it asignificant factor for prospective tenants?
Neild: In the commercial sector, greenbuilding will become the new standard. Owners and developers whodon't develop expertise in green building will be left behind. Infact, they already are. According to the 2007 Green Building Surveyfrom National Real Estate Investor and Retail Traffic, 84%of corporate users and 74% of developers surveyed expect to own,lease or manage green properties by 2012. New commercial buildingpermits with LEED registration continue to climb at a staggeringrate. Every business day, developers and owners register more than$100 million worth of commercial construction for certification.The USGBC estimates 10% of the new construction market is followingtheir guidelines. As of May 2008, the organization had 15,000member companies. Green remodeling of commercial property is on therise as well. Hundreds of property owners in Portland alone havetaken advantage of tax credits and cash incentives available forenergy efficient green remodeling.

Tenants are already thinking green as well, and corporatetenants in particular have indicated their willingness to pay apremium to lease space in a LEED building. Almost all of thecorporate respondents surveyed for the 2007 Green Building Surveysaid they'd pay more for green space. Nearly 1 in 4 respondentssaid they'd pay up to 9% more, slightly over one in four would pay3% to 4% more. And 39% would pay a 1% to 2% premium.