Comments on: RICS Study: No Premium for LEED-Certified Commercial Office Buildings http://www.greenrealestatelaw.com/2009/04/rics-study-finds-no-leed-premium/?utm_source=rss&utm_medium=rss&utm_campaign=rics-study-finds-no-leed-premium Current issues in sustainable building law for owners, builders, and design professionals. Fri, 10 Feb 2012 01:57:04 +0000 hourly 1 http://wordpress.org/?v=3.3 By: Australian Office Market Preparing for Mandatory Energy Disclosure Beginning November 1 | Green Real Estate Law Journal http://www.greenrealestatelaw.com/2009/04/rics-study-finds-no-leed-premium/comment-page-1/#comment-1497 Australian Office Market Preparing for Mandatory Energy Disclosure Beginning November 1 | Green Real Estate Law Journal Fri, 22 Oct 2010 12:34:58 +0000 http://www.greenrealestatelaw.com/?p=267#comment-1497 [...] by many commentators), there have been no comparable studies performed to date in Australia. One particular U.S. study, authored by Piet Eichholtz and Nils Kok of Maastricht University and John Quigley of Berkeley, [...] [...] by many commentators), there have been no comparable studies performed to date in Australia. One particular U.S. study, authored by Piet Eichholtz and Nils Kok of Maastricht University and John Quigley of Berkeley, [...]

]]> By: Stephen Del Percio http://www.greenrealestatelaw.com/2009/04/rics-study-finds-no-leed-premium/comment-page-1/#comment-1171 Stephen Del Percio Sat, 20 Mar 2010 17:04:43 +0000 http://www.greenrealestatelaw.com/?p=267#comment-1171 In this economy, absolutely, but I think one of the general critiques of the CoStar study was that most LEED buildings are brand-new and Class A, so of course they're going to command higher rental rates. Also, those LEED buildings that were sold during the study period (2002-2007) traded hands in the most volatile real estate market in recent history. The point I take from these studies which I emphasize in my presentations is that there just isn't enough data yet on green buildings to draw meaningful conclusions that can serve as the basis for policymaking. In this economy, absolutely, but I think one of the general critiques of the CoStar study was that most LEED buildings are brand-new and Class A, so of course they’re going to command higher rental rates. Also, those LEED buildings that were sold during the study period (2002-2007) traded hands in the most volatile real estate market in recent history.

The point I take from these studies which I emphasize in my presentations is that there just isn’t enough data yet on green buildings to draw meaningful conclusions that can serve as the basis for policymaking.

]]> By: Stephen Del Percio http://www.greenrealestatelaw.com/2009/04/rics-study-finds-no-leed-premium/comment-page-1/#comment-1170 Stephen Del Percio Sat, 20 Mar 2010 17:01:36 +0000 http://www.greenrealestatelaw.com/?p=267#comment-1170 Correct- same data, but different methodologies and conclusions. The CoStar study though is what has been widely disseminated for the proposition that green buildings are worth more and command higher leasing rates. Correct- same data, but different methodologies and conclusions. The CoStar study though is what has been widely disseminated for the proposition that green buildings are worth more and command higher leasing rates.

]]> By: Jeffrey Geibel APR, LEED AP http://www.greenrealestatelaw.com/2009/04/rics-study-finds-no-leed-premium/comment-page-1/#comment-1116 Jeffrey Geibel APR, LEED AP Thu, 04 Mar 2010 15:35:04 +0000 http://www.greenrealestatelaw.com/?p=267#comment-1116 The RICS study contradicts a study done by Costar in 2008 - which would be approximately the same period studied by RICS: 2004-2007(reference below). It would appear that they both used the same Costar data. ---------------- CoStar Study Finds Energy Star, LEED Bldgs. Outperform Peers Demand in Marketplace for Sustainability Creates Higher Occupancy Rates, Stronger Rents and Sale Prices in 'Green' Buildings March 26, 2008 http://www.costar.com/news/Article.aspx?id=D968F1E0DCF73712B03A099E0E99C679 The RICS study contradicts a study done by Costar in 2008 – which would be approximately the same period studied by RICS: 2004-2007(reference below).

It would appear that they both used the same Costar data.
—————-
CoStar Study Finds Energy Star, LEED Bldgs. Outperform Peers
Demand in Marketplace for Sustainability Creates Higher Occupancy Rates, Stronger Rents and Sale Prices in ‘Green’ Buildings
March 26, 2008
http://www.costar.com/news/Article.aspx?id=D968F1E0DCF73712B03A099E0E99C679

]]> By: TOM W. http://www.greenrealestatelaw.com/2009/04/rics-study-finds-no-leed-premium/comment-page-1/#comment-1072 TOM W. Wed, 10 Feb 2010 00:47:12 +0000 http://www.greenrealestatelaw.com/?p=267#comment-1072 LEED for most intents and purposes is a fad; and an expensive one at that. Building owners are of a mind that LEED "is nice to have", but in no way justifies the cost, which is approximately 2 to 4% additional to the original construction price. Saving energy is a different matter entirely and is handled nicely by EnergyStar and other programs, without going to the extra cost and bother of trying to get LEED certified. Every architect and their dog is a LEED AP now; that's one reason why LEED is being pushed so hard, but until and unless it's mandated by law, most builders and developers are not going to be interested. LEED for most intents and purposes is a fad; and an expensive one at that.
Building owners are of a mind that LEED “is nice to have”, but in no way justifies the cost, which is approximately 2 to 4% additional to the original construction price.
Saving energy is a different matter entirely and is handled nicely by EnergyStar and other programs, without going to the extra cost and bother of trying to get LEED certified.
Every architect and their dog is a LEED AP now; that’s one reason why LEED is being pushed so hard, but until and unless it’s mandated by law, most builders and developers are not going to be interested.

]]> By: Susan Aiello http://www.greenrealestatelaw.com/2009/04/rics-study-finds-no-leed-premium/comment-page-1/#comment-928 Susan Aiello Fri, 06 Nov 2009 14:36:40 +0000 http://www.greenrealestatelaw.com/?p=267#comment-928 I find the RICS findings confusing, since the study was based on data provided by CoStar. And according to CoStar, occupancy rates in LEED buildings is increasing as occupancy rates in all other buildings is declining. Aren't occupancy rates at least as strong an indicator of value than rent per square foot? I got permission from CoStar to use their very compelling slide on occupany rates for a lecture I gave, and also used the same slide to illustrate the following entry on my blog: http://sustainableinteriordesignsolutions.blogspot.com/2009/08/building-owners-need-to-go-green-to.html I find the RICS findings confusing, since the study was based on data provided by CoStar. And according to CoStar, occupancy rates in LEED buildings is increasing as occupancy rates in all other buildings is declining. Aren’t occupancy rates at least as strong an indicator of value than rent per square foot?

I got permission from CoStar to use their very compelling slide on occupany rates for a lecture I gave, and also used the same slide to illustrate the following entry on my blog:

http://sustainableinteriordesignsolutions.blogspot.com/2009/08/building-owners-need-to-go-green-to.html

]]> By: Will http://www.greenrealestatelaw.com/2009/04/rics-study-finds-no-leed-premium/comment-page-1/#comment-472 Will Mon, 13 Apr 2009 19:33:03 +0000 http://www.greenrealestatelaw.com/?p=267#comment-472 RICS also mentioned the difficulty in identifying a peer group for the LEED buildings, which were mostly new Class-A commercial. I think that cuts both for and against valuation, but that it is likely to overstate any LEED benefits. The increased value for markets with greater HVAC use makes sense since these projects are most obviously marketed (and can demonstrate) energy efficiency. I share your surprise that the lack of a LEED bonus has not been widely mentioned. RICS also mentioned the difficulty in identifying a peer group for the LEED buildings, which were mostly new Class-A commercial. I think that cuts both for and against valuation, but that it is likely to overstate any LEED benefits. The increased value for markets with greater HVAC use makes sense since these projects are most obviously marketed (and can demonstrate) energy efficiency.

I share your surprise that the lack of a LEED bonus has not been widely mentioned.

]]> By: New Building Technology for April 7, 2009 « Askthefm’s Weblog http://www.greenrealestatelaw.com/2009/04/rics-study-finds-no-leed-premium/comment-page-1/#comment-383 New Building Technology for April 7, 2009 « Askthefm’s Weblog Tue, 07 Apr 2009 04:46:14 +0000 http://www.greenrealestatelaw.com/?p=267#comment-383 [...] building and especially the LEED certification. The story is on the Green Real Estate Law Journal (http://www.greenrealestatelaw.com/2009/04/rics-study-finds-no-leed-premium/) and the highlights are as [...] [...] building and especially the LEED certification. The story is on the Green Real Estate Law Journal (http://www.greenrealestatelaw.com/2009/04/rics-study-finds-no-leed-premium/) and the highlights are as [...]

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