LEED by example: Sustainability and the future of commercial real estate

Though many new LEED-certified office developments have received a good deal of attention in the media, most of the country's commercial building stock is comprised of older, less-environmentally friendly properties. These buildings consume 70% of all the electricity used in the nation and 12% of our clean water supply. More importantly, they constitute nearly 40% of greenhouse gas emissions in the U.S.—more than the 33% emitted by automobiles—making them the number one cause of global warming. How the commercial real estate industry tackles this issue and the steps it must take to combat global warming, were just some of the subjects discussed by Sally Wilson, global director of environmental strategy for CB Richard Ellis, at the firm's Annual Long Island Market Forecast held last month. Wilson, the first LEED-certified commercial real estate broker in the country, focused on several actions the real estate industry can take to combat the affects of global warming over the next 20 years. These included taking a stronger leadership role in the way buildings are developed and managed and the need for brokers and owners to rethink how to best retrofit existing structures to meet sustainable guidelines. While the initial up-front cost for the redesign of these assets may cause some to hesitate, the end result and cost-savings is worth it. Some of the key benefits to owners who opt to retrofit their properties include: * Higher demand for sustainable office space by a new generation of business owners, who are socially responsible * Very little over-engineering translates to a decrease in overall construction costs * According to industry studies, better air quality equates to a two to 16% increase in employee productivity * Reduction of waste products * Electric cost reduction * Public relations opportunity when marketing LEED-certified new developments or retro-fitted properties. Wilson emphasized that by building "green" the industry can reduce carbon dioxide emissions by 30%. As an example of a socially responsible firm, she also focused on her own company's recent announcement to become carbon neutral by 2010 and a plan to assist its clients with energy efficiency programs within the 1.7 billion s/f of building space that it manages around the world. This plan represented the first time a major commercial real estate services firm has announced going carbon-neutral. Furthermore, she talked about the U.S. Green Building Council's LEED committee, which has been responsible for setting the sustainable guidelines for commercial, residential, and interior, and is now looking to set new standards for industrial properties. Given the large supply of industrial space on Long Island, these standards and their implementation will be the key to maintaining the future of a "healthy" island. In closing, Wilson re-emphasized how the commercial industry is now in the ideal position to show social responsibility and bring lasting changes that translate to sustainable buildings and a better environment for generations to come.