Appraisal Podcasts

Would You Pay a Premium to Lease Green Space?

A recent article on the FacilitiesNet wesbite posed that question. From the article:

Two 15-story buildings stand right next to each other in a prime downtown location of a major city. Both buildings are brand new and have received plenty of inquiries from potential tenants.

Building #1 is a traditionally built, modern facility — it meets code to the letter. Building #2 is similar to Building #1 in terms of amenities. It offers the same types of leased space, but designers have taken a few extra steps to make it a green building — it has a LEED Core and Shell certification, and its developer has offered to assist tenants with their own LEED for Commercial Interiors certification goals. A lease for 40,000 square feet of space at Building #1 costs approximately $35 per square foot, Building #2 costs $36.50 per square foot. Is the cost premium worth it?

For the answer to this and more on Green Buildings, follow this link.

For additional articles point your browser here. 

This entry was posted on Wednesday, January 31st, 2007 at 11:30 pm and is filed under Green Buildings. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.