L.A. Is a Leader in Green Building Certificates

Los Angeles is one of the top markets in the country for buildings with green certifications. According to research from CBRE in the firm’s annual Green Building Index, Los Angeles ranks second in the nation for the number of buildings with green certifications, totaling 363. The report also ranks the city fourth for the amount of total square footage with green building certifications, with 56.3% of the total supply certified green.

“The high number of certifications in Los Angeles can be attributed to many factors. The first is Los Angeles’ position as a “gateway” city that attracts sophisticated capital investments, from both global and national capital sources,” David Pogue, SVP of global client care and sustainability at CBRE, tells Globest.com. “These types of investors generally invest in sustainable buildings and in larger assets, because of the higher achievement in gaining certifications. The makeup of the local tenant population is also important as larger corporate users, especially in industries such as finance, engineering, or technology typically seek certified buildings to occupy. Other firms that rely on attracting younger, millennial employees also use their sustainable occupancy standards to attract and retain talent.”

In addition to demand from capital and tenants, the local government also encourages certifying green buildings, helping to boost numbers. “Local or other applicable state laws and regulations, such as “green” building codes and energy disclosure requirements have set a standard for the marketplace,” explains Pogue. “Los Angeles benefits from every one of these characteristics and this results in a higher percentage of green space. It should be no surprise that the two California cities, Los Angeles and San Francisco, which have similar profiles in these matters, are in the top 4 of the survey.”