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Cost is one of the biggest challenges to developers looking to go green. This is especially true for short-term investors, who might see green development as an obstacle to a larger return. Green construction—including LEED certifications—have grown wildly in popularity and have become a way to drive value and occupancy at an asset. Even industrial development has turned to greener building and LEED certification, disrupting the reputation of industrial properties as dirty manufacturing plants.

“Building to green standards often means increased costs, especially if the goal is to attain LEED Platinum, the highest level of LEED certification,” Jon Pharris, president of CapRock Partners, an experienced industrial and green developer, tells GlobeSt.com. “For long-term owners/investors such as REITs or sovereign wealth funds, those additional features may be a valuable and worthwhile investment. However, for short-term players the additional expense does not always directly translate to a quantifiable return on investment.”

Kelsi Maree Borland

Kelsi Borland is a freelance writer and editor living whose work has appeared in such publications as Travel + Leisure, Angeleno and Riviera Orange County.

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