Welcome to the U.S. Green Building Council
Northern California Chapter
The #1 green building resource in the 10th largest world economy.
What are you waiting for?
Newsletter
Stay updated on the latest green building news, classes, & events in Northern California.
|
Education
Prepare to pass a LEED credentialing exam or learn basic to advanced green building practices.
|
Events
Join us for monthly educational forums, tours, & networking opportunities, held throughout Northern California.
|
Membership
Have a local impact and get discounts on events & workshops as well as a directory listing.
|
Sponsorship
Demonstrate your leadership and expose yourself to a rapidly growing green building community.
|
|
|
|
|
LEED Going Strong in the Bay Area with EBOM |
|
|
News -
Green Building News
|
|
Written by CB Richard Ellis
|
|
Monday, 17 August 2009 |
SUMMARY:
LEED application activity is still strong, buoyed by projects seeking LEED Existing Buildings : Operations and
Maintenance (EBOM) certification. As of the beginning of the third quarter, 88 Bay Area projects have applied for LEED
EBOM certification, as opposed to only 78 applications in all of 2008.
As the economy continues to falter, construction and leasing activity remain at a virtual standstill. Because of this,
applications for LEED New Construction (NC), LEED Commercial Interiors (CI), and LEED Core and Shell (CS) certification
have not increased at the levels previously expected. However, LEED application activity is still strong, buoyed by projects
seeking LEED Existing Buildings: Operations and Maintenance (EBOM) certification. As of the beginning of the third
quarter, 88 Bay Area projects have applied for LEED EBOM certification, as opposed to only 78 applications in all of 2008.
The 88 existing buildings represent nearly half of the total number of LEED applications in the Bay Area; in 2008, only a
third of all projects sought LEED EBOM certification.
With new available spaces coming to market daily, it is as crucial as ever for
landlords to be able to differentiate their space from the countless others
currently on the market. According to landlords and listing agents, LEED
certification can help a building not only attract new tenants, but also retain
existing occupants. Some evidence of this might be found in Sunnyvale, as both
the Sunnyvale Business Park on California Avenue (516,894 sq. ft) and the
Sunnyvale City Center at 100-190 Mathilda Avenue (468,710 sq. ft.) applied
for certification during the quarter. The motivation behind these applications
could partially be due to the rapidly increasing vacancy seen in the city. As of
the end of the second quarter, office and R&D vacancy in Sunnyvale stood at
53% and 14%, respectively. Aside from attractiveness to tenants, the cost
savings of “going green” are also attractive to landlords who are faced with a
difficult economic climate; some landlords are undoubtedly pursuing
certification for solely financial reasons.
This trend is not limited to Sunnyvale, or even the South Bay. In the first two
quarters of 2009, many major San Francisco buildings filed with the U.S. Green
Building council in hopes of obtaining LEED EBOM certification. Marquee properties such as the Embarcadero Centers
(2,357,267 sq. ft.), 101 California Street (1,200,000 sq. ft.), 50 California Street (684,000 sq. ft.), 45 Fremont Street
(594,000 sq. ft.) and 370 Third Street (400,888 sq. ft.) have all applied so far this year; these buildings represent only a
handful of the 43 San Francisco properties to apply for LEED EBOM certification in the first six months of 2009. Although
many landlords are still wary of spending additional capital in order to “go green” it seems as if many of the myths which
stated that the costs of sustainable construction were prohibitive are starting to erode, as evidenced by the increasing
number of LEED applications. According to the US Green Building Council and studies performed by UC Berkeley, UCSD
and others, the costs of going green for new construction ranges from zero additional outlay to 6% of total construction
cost, depending on the level of certification desired. For existing buildings (especially those built after 1999), the cost of
applying for LEED is often limited to the fees associated with the certification process. In addition to the decreasing cost associated with sustainable construction, increases in the cost of electricity and natural gas accelerate the payback period
on investments made by LEED applicants. Recently, Pacific Gas & Electric Company announced a planned rate increase of
6.5% by 2011, 1.4% in 2012, and 1.8% in 2013. Landlords, and possibly tenants, of buildings which are compliant with
LEED standards will likely be less affected by utility rate increases. The increased participation in LEED suggests that many
progressive landlords are exploring the process not only to save money in the long-term, but also to be better positioned in
an evolving leasing market where tenants are more conscious of their impact on the environment.
According to brokers who specialize in tenant representation, tenants are not yet pushing landlords to pursue LEED
registration. However, many believe that increased tenant demand for “green” space is on the horizon. As companies
continue to market themselves as environmentally responsible, many are determining if the next step in reducing their
carbon footprint is to move into a LEED or Energy Star certified property.
Read the entire report (pdf).
© 2009, CB Richard Ellis, Inc.
|
|
Follow Us
|
USGBC-NCC's website hosting is
offset with carbon credits.
|
