In one of their rare turns in the gbNYC spotlight, Jamestown Properties is acquitting itself well. Jamestown recently announced a commitment to do up to $10 million worth of green retrofits on its entire U.S. building portfolio. Given the size of Jamestown’s $4 billion portfolio, that’s a lot of buildings, with such major New York City properties as LEED Gold-hopeful 1250 Broadway and Chelsea Market among them. While Jamestown isn’t doing this out of the goodness of its Multinational Corporate Heart — they’ll make their money back through energy savings and higher rents and sale prices — their choice carries with it a number of heartening potential effects. In the Times, Alison Gregor explains the possible curve-bending effects of Jamestown’s decision to green its fleet.
Tag Archives | green building premium
On July 1, new green building legislation applying to private development took effect in Baltimore. Council Bill 07-0602, which was signed in August of 2007, required that the city establish green building standards for new or substantially renovated commercial and multi-family residential buildings larger than 10,000 square feet. City-owned buildings were required to comply with the new legislation beginning January 1, 2008, city-subsidized buildings by January 1, 2009, and all other buildings this past July 1. While the city is developing its own Baltimore-specific green building standards that should be released by the end of 2009, in the interim, in order to obtain a building permit, all buildings applying must be “equivalent” to LEED Silver. The legislation does not require formal LEED certification, but owners must submit a checklist for the appropriate LEED rating system as part of the plans submittal for a new building permit. Checklists must set forth specific credits the project will pursue, briefly describe how each credit will be achieved, and (interesting to note from a legal perspective) the parties responsible for each credit. The checklist must also be signed by a LEED AP who is not an employee of the building owner at the time of submittal. Again, although certification is not required, in order to obtain a building occupancy permit from the city, at the time of occupancy permit application, project teams must submit a completed checklist indicating which credits the project met successfully, signed by a non-employee LEED AP. As we’ve discussed frequently here at GRELJ, all of these requirements could raise interesting- and novel- liability issues in the event that a project fails to receive a building permit or certificate of occupancy as originally contemplated. However, the city’s development community is calling for Baltimore’s City Council to reconsider the legislation based on perceived additional green building first costs and asking it to propose an incentive-based structure in its place.
Last week, the Royal Institution of Chartered Surveyors (“RICS”) released the results of a study authored by Piet Eichholtz and Nils Kok of Maastricht University and John Quigley of Berkeley. Titled “Doing Well By Doing Good? An Analysis of the Financial Performance of Green Office Buildings in the USA,” the purpose of the study was to determine whether investors are currently willing to pay any premium for green (Energy Star- and LEED-certified) commercial office buildings and, if so, what that premium is. The authors identified 1360 buildings- 286 LEED-certified, 1045 Energy Star-certified, and 29 certified under both systems- and were able to obtain complete building characteristics and monthly rents from CoStar for 649 of them, as well as sales data for 199 buildings that swapped hands between 2004 and 2007. To create a pool of peer buildings, the authors used the CoStar database to identify all other office buildings within a quarter mile radius of the subject green building to create a “cluster” of buildings for each of the 893 subject buildings. The study concluded that “the type of label matters. We find consistent and statistically significant effects in the marketplace for the Energy Star-labeled buildings. We find no significant market effects associated with the LEED label. Energy Star concentrates on energy use, while the LEED label is much broader in scope. Our results suggest that tenants and investors are willing to pay more for an energy-efficient building, but not for a building advertised as ‘sustainable’ in a broader sense.”
Washington State’s High-Performance Public Buildings Act requires LEED Silver certification or a design that complies with the state’s Sustainable School Design Protocol for schools larger than 5000 square feet. In a video describing the benefits of green schools that is available on the State Superintendent of Public Schools’ web site, certain claims are made about the promise of “clean, high-performance, money-saving schools” that are “a wise business choice for cost conscious schools. Relatively small increases in design and construction costs, usually less than 2 percent, ultimately bring 10 to 15 percent reductions in long-term operating costs.” The folks at KING 5 television in Seattle caught wind of these claims and decided to do some digging; you can view the station’s full report through the link at the bottom of this article. As you might guess, the station concluded that the state’s claims about green building premiums, decreased operating expenses, and higher student test scores were highly exaggerated.
Building Design + Construction magazine’s fifth green building White Paper is now available for download. We commented on last year’s edition- Green Building and the Bottom Line- in a series of posts, discussing restaurants, retail, office buildings, hotels, and professional liability issues for architects and engineers as presented in the White Paper. The 2007 installment […]