Browse Tag: Green building

IMT, Better Buildings Alliance Announce 2015 Green Lease Leaders

Brant Smith and Greta Garner
REALTORSⓇ Brant Smith and Greta Garner

The Institute for Market Transformation (IMT) and the U.S. Department of Energy’s (DOE) Better Buildings Alliance recently announced the 2015 Green Lease Leaders. Established in 2013 with support from leading real estate practitioners, the recognition program distinguishes property owners, tenants, and brokers who are effectively using the lease as a vehicle to drive energy and water savings in commercial buildings.

The brokers recognized are market leaders who successfully add value for clients on major sustainability and energy issues, providing crucial guidance as the demand for green buildings grows.

This year’s recipients are:

“In addition to so many forward-thinking property owners and tenants this year, we’re excited to be celebrating commercial brokers too as they play such a vital role in real estate transactions,” said Adam Sledd, Director for IMT’s commercial real estate engagement program. “Brokers facilitate many interactions between landlords and tenants, and are relied on to identify and add sustainable best practices into the lease—this year’s Green Lease Leaders show a clear sign of the mastery of proven measures to reduce operating expenses and lessen the impact of buildings on the environment.”

A green lease encourages collaboration to take action to improve efficiency, saving tenants and building owners on average, 10-20 percent each month on a building’s energy and water bills. Since brokers are central to all aspects of a commercial transaction, their knowledge and expertise in clauses and addendums that cut energy waste is crucial for savings to be realized. A study released by IMT last week showed that green leases could deliver nearly $3 billion in annual savings for the U.S. office sector alone.

Historically, real estate owners and tenants have had difficulty integrating sustainability into the lease process due to tension between owners and tenants over responsibilities and cost-sharing arrangements.

The Green Lease Leaders program is helping to define green leasing and shine a light on replicable solutions that can be employed by others to get past split incentives.

“Today I’m pleased to announce the continued success of the Green Lease Leaders program,” said Dr. Kathleen Hogan, Deputy Assistant Secretary for Energy Efficiency at DOE, during a presentation at the

Better Buildings Summit. “This effort is showing that cooperation on energy efficiency is no longer just a niche practice.”

For more information on the Green Lease Leaders program, visit, and to learn more about the benefits of green leases, visit the Green Lease Library at


The Institute for Market Transformation (IMT) is a Washington, D.C.-based nonprofit organization promoting energy efficiency, green building, and environmental protection in the United States and abroad. IMT’s work addresses market failures that inhibit investment in energy efficiency and sustainability in the building sector. For more information, visit and follow us on Twitter at @IMT_speaks.


The Better Buildings Alliance is a U.S. Department of Energy (DOE) effort to promote energy efficiency in U.S. commercial buildings through collaboration with building owners, operators, and managers. Members of the Better Buildings Alliance commit to addressing energy efficiency needs in their buildings by setting energy savings goals, developing innovative energy efficiency resources, and adopting advanced cost-effective technologies and market practices

Green Building Cert Update: LEED v4 Coming Online

United States Green Building Council


Adopting LEED green building certification for new commercial construction is rising in popularity across the US as concerns about environmental sustainability and impact on commercial tenants mount.   The commercial property without LEED certification faces a future where conversation about that property’s value that will be affected.  On the buy side, tenants and prospects will use new benchmarks to make comparisons among properties that include LEED parameters as well as energy usage and performance metrics enabled by modern energy management with an eye toward sustainability   On the sell side, landlords and brokers need to answer the mounting questions about suitability along sustainability lines as retailers increasingly factor green practice into conversations and customer experience.

Find your state’s LEED Market Brief and State Snapshot at

LEED v4 Launching This Fall, Includes Performance Specs

The new version of LEED  — v4  — will launch at the Greenbuild Conference and Expo, Nov. 18-23 in Philadelphia. The new  standard includes a performance-based system for green building design, construction and operation.  A focus on outcomes, commensurate with the increase in data collection available to property operators, is baked into the new LEED standard.  New concepts include a holistic approach to property construction and operation as opposed to a more materials-based approach.  The greater complexity ensures a steeper learning curve, but the focus on performance means that valuing LEED-compliant properties is a process that has taken a big step toward the practical.   Meter readings and bills for consumables will be more central than ever in the total LEED picture.

Special Focus On Medical Property

This year, health care giant Kaiser Permanente announced plans to earn LEED certification for $30 billion in new construction projects over the next ten years.  The projects cover 14 million square feet of office space in about 100 buildings.

 “By adopting the LEED standard for all new major construction, we are demonstrating our commitment to green building strategies and to the total health of our communities,” said Don Orndoff, Kaiser Permanente senior vice president of National Facilities Services. “The LEED certification program provides an internationally recognized approach to building and operating well-designed buildings.”

Total health – there’s that holistic approach once again.  Expect more of this nationally as the commercial property sector is increasingly compelled to “consider the forest as well as the trees”.

Underwriting Sustainable Commercial Properties: Financing: NAR Annual 2011 Session

Solar Panel Array

A blue-ribbon (green-ribbon?) panel led today by Peter L. Mosca, GREEN, SFR at NAR Annual 2011 went a long way in exploring how to properly value green and sustainable commercial property from a range of angles, including appraisal, regulatory compliance, policy and operations. The panel included:

Theddi Wright Chappell, CRE,  Senior Managing Director and the National Practice Leader of the Green Advisory Practice at Cushman Wakefield

Bill Conley, Bill Conley CFM, CFMJ, LEED AP, IFMA Fellow, owner/CSO of CFM2, a facility management & Sustainability Consulting company based in Orange County, Calif.

John Ellis, CRE, MAI, FRICS,  Managing Director of Integra Realty Resources – Los  Angeles

Mike Merrifield, CCIM, Independent Investment

“Cost effective,  structured and designed sustainable properties that focus on health and productivity benefits will continue to make money,”  said Mosca, leading off a free-wheeling conversation between the panel and the audience on a range of topics that I couldn’t hope to put in a single post to The Source, so rest assured there’s more coverage coming.

On the topic of finances, Mosca cited a new study by the Royal Institution of Chartered Surveyors that “showed new evidence on the financial performance of green office buildings in the United States.  Green buildings performed better than nongreen (the term “brown building” came up; use at your own risk) commanding rental rates substantially higher than those of competing buildings.”

John Ellis responded by citing a recent study by CoStar’s CEO Andy Florance that “analyzed the real value of LEED certification, finding that these building got 10-15% premium at time of resale…It is becoming clear to the tenants what the economic impact is of having an energy efficient building.  They are migrating toward the LEED certified buildings and seeing higher occupancy, higher property values and sale prices.”

Later, Bill Conley raised the interesting effect of green on office property: “It’s been said you take a brown class C building and turn it into a class A building”.

Watch for more posts at The Source about the best practices in green and sustainable building valuations and management.

Get a full copy of the panel discussion led by Peter Mosca at PlaybackNAR. 


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Commercial Brokers And Green Buildings: Know Your Basics

When it comes to green buildings, most commercial real estate brokers are in a bind.  They have the trusted business relationships, they have the ear of the clients, and they’re positioned to stay put.  But adding value to deals is harder than ever when the buildings themselves demand more and more from their handlers.

Changes in technology affect all stakeholders – brokers, property managers, and owners – in a increasing number of ways.  Technology changes in building controls, new goals in sustainability and energy efficiency, new regulations and the rise of the smart electrical grid all add up to headaches for the average commercial broker.  Whether under the heading “green” or “smart”, brokers are caught without enough information about the new trends and struggle to add value.

Part of this is because what architects and engineers used to handle exclusively – usually at build time – is now an ongoing process that absolutely impacts bottom lines on property deals.  New technologies affect all the areas that brokers traditionally advise on – leases, pro formas, financing.   While brokers aren’t supposed to become experts in technology, the days where a couple of cliches about green this or smart that just don’t cut it any more.

NAR Commercial has put out a great podcast that addresses the basics in green technology in an interview with Tom Shircliff of Intelligent Buildings Incorporated.  As a strategic consultant to key stakeholders, it’s Tom’s job to keep CRE pros aware of green/smart building terminology and some tech too – just enough to add value to a deal. Check it out here. And don’t fear the new: make it work for you!