From the Editor
About two years ago, a story in Barron’s pointed out, almost casually, that two LEED-certified speculative office buildings in Chicago had been sold soon after they were built for profits of $116 million and $144 million, respectively. For advocates of green building, the idea that a LEED-certified building could be profitable was simple common sense – but hard evidence had been elusive. So often, developers won’t sink money into “bells-and-whistles” green features because they’re planning the ‘ole build-and-flip – selling the building the second the ribbon is cut. Their concern is solely building the building for profits - let the long-term owners and tenants worry about being environmentally responsible.

However, the astronomical profits the two Chicago buildings made for their developers was really the first widely publicized (and now most-oft-cited) piece of evidence that green speculative office buildings make financial sense. Another piece of evidence arrived this past March when a study by the CoStar Group reported that LEED-certified buildings have a 4.1 percent higher occupancy rate, command a rent premium of $2.4 per square foot sell for an average $171 per square foot more than traditional building. That last number should grab your interest – it’s huge!

So it appears the tide is turning. Green speculative office buildings are on the (high) rise. Examples abound. Even the Freedom Tower (when it eventually does rise) will be a LEED-certified project.

Are you working on a green spec building?  If so, I’d love to hear your story.

Cheers,
Greg Zimmerman, editor

Green Strategies
Green Developers Break New Ground
Speculative office buildings are beginning to go green. The reason: profits.

In the News
Commercial Construction to Slow Dramatically in 2009
This isn’t exactly good news, but it does mean that buildings that ARE built should be built to high standards. Increasingly, that means green.

Green Toolkit
Not a Shell of Its Former Self
The LEED Core and Shell rating system was designed specifically for developers. It is a blueprint for how to design and build green speculative buildings.

Green Pulse
Has the recent evidence about the value of green speculative office buildings convinced you that green is profitable?  
- Yes
- No
- I’m still not sure

Click here to answer and view results.

GreenTech Conference & Exposition
Get Up to Speed on Green Issues – for Free
The Facility Decisions Conference and Expo, Sept. 16-17 in Las Vegas, includes many free educational sessions on greening your buildings. Register today for the following free sessions:
*Ultra-Efficient HVAC Systems

*Water Efficiency for Facilities in Water-Scarce Environments

*IAQ's Role in Sustainability

*High-Level Results: Roofing Designs for Maximum Sustainability


*What is This Thing Called LEED?

*Green Cleaning: A Roadmap to Implementation

*LED Lighting for Today and Tomorrow


See all the conference sessions at Facility Decisions Conference & Expo. Choose from 50 sessions and build the training that meets your needs.