Setting the Industry Standard CB Richard Ellis is setting the industry standard in LEED certified buildings, supporting newly certified projects that are one-of-a-kind or the first ever in their category. Clients are not only enjoying greater efficiencies and more sustainable business operations, but the benefits of being one of the world leaders in redefining the commercial real estate landscape. To learn more, contact Gary Thomas (LEED EB), Rick Smith (LEED NC/CI) or Bob Abberger (LEED NC).

First-Ever LEED Certifications Ameriprise Financial Center and Ameriprise Financial Client Service Center are the first buildings in Minneapolis to earn LEED EB certifications One Boston Place: World’s first LEED EB: O&M Gold certified building One Beacon Street: First LEED EB certified building in Boston First City Tower: First LEED EB: O&M Gold certified building in Texas Hess Tower: First building in Houston’s CBD to achieve precertification by USGBC as a LEED for Core & Shell project at the Gold level.

Gary Thomas directs CBRE’s sustainability
certification and analysis services for property
and facilities management across the Americas.
A LEED AP, Gary serves as the key liaison with
USGBC and has more than 20 years of commercial
real estate experience.

Q: What is LEED for Existing Buildings or LEED EB?
The U.S. Green building Council (USGBC) created the LEED for Existing Buildings (LEED EB) rating system to identify and reward commercial projects which meet USGBC standards that measure operations and maintenance on a consistent scale, with the goal of maximizing operational efficiency while minimizing environmental impacts. A LEED EB certification is achieved by meeting specific prerequisite and credit requirements as identified by the USGBC subject to a rigorous third party verification process.

Q: Why should a building owner pursue a LEED certification for their assets?
Market differentiation is foremost among the many reasons and circumstances that persuade a property owner to move forward with a LEED EB certification. The challenging economic climate of the past year has created fierce competition for tenants. In every major market, we have encountered tenants seeking to be located in LEED certified buildings. A main concern for a building owner should be to position their project so it will not be left behind or rendered non-competitive as the green market transformation grows.
 
Another frequent question is “Does investment in green make sense?” It is a very complex issue and there is no all-or-nothing answer. The common indicators that affect value of investment-grade commercial properties (higher rents, increased sales price and lower operating costs) are all evident in studies of LEED certified buildings, but the real impact will be more clearly identified over the next several years.

Owner occupied sites are often similarly motivated by investment return. Often as important, however, are an institution’s desires to reduce their negative impact on the environment and create a healthier, more productive workplace for their employees by following LEED EB guidelines.

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Q: How much will it cost and how long will it take to achieve LEED EB certification?
From initial analysis through certification application approval, the effort is a 10-12 month process. A LEED certification effort consumes hundreds of hours of time and the requisite documentation uploads can exceed 2,000 pages. It is important to understand the timeframe involved in order to set realistic expectations for budgeting and goal setting. One of the main challenges is that a LEED EB certification effort is unique for each building and the submission for each project is tailored specifically to the site and its circumstances.

One of the greatest misconceptions surrounding LEED EB certifications is the potential cost. We have proven that sites can become certified for as little as $0.12 per square foot, but the typical range is $0.25 to $.45 per square foot. 

Q: What trends do you see?
Our industry has undergone a substantial transformation as forward-looking property owners and tenants have embraced green building practices. The challenging economic climate of the past year has created fierce competition for tenants and we have encountered tenants in every major market in the country seeking to be located in LEED certified buildings.

There are now more than 3,000 buildings registered for LEED EB certification and over 270 certified. We expect this trend to continue across the country and estimate that those numbers will triple by the end of 2009.

Additionally, federal, state and local governments have created edicts that require certain owned and leased space to become LEED certified, and we fully expect that trend to continue and become even more stringent over the next few years. 

Without a coordinated effort among property owners, the playing field has tilted dramatically in many markets, as the result of an attempt to reconcile value with environmental risk management while attempting to meet occupant needs and expectations. Although LEED certification is only part of a client’s sustainability initiatives, it is a measurable and recognizable achievement considered to be the industry’s gold standard.

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Q: How can a Real Estate Manager prepare their property for LEED EB certification?
A great place to start is by adhering to CBRE’s 2009 Standards of Sustainability. Seven of the 10 standards are directly related to LEED credit point potential including implementing a green cleaning program, a comprehensive recycling program, an environmentally friendly landscape management plan, and conducting a baseline waste stream audit.

In combination with the Standards of Sustainability, each site should move toward installing only low mercury lamps where possible and retrofitting or installing new restroom fixtures to meet industry and LEED standards. Although there has been, and will continue to be, a focus on energy use reductions, I believe that water use and desired reductions will become just as important (or more so) in the next 5 to 10 years.

In addition, the only true way to understand the status of a particular building as it relates to the LEED EB rating system is to complete a gap analysis assessment. Our CBRE Sustainability Group has the capability to perform a gap analysis for any property worldwide. The gap analysis report details the viability of a project to meet LEED requirements and provides a property owner with the information needed to enable them to make the decision whether or not to pursue
LEED certification. 

Q: What is the first step to LEED EB certification?
As mentioned, the initial step is to complete a gap analysis, but also for any site that is considering certification now or in the future, we recommend registering the project with the USGBC by June 26, 2009. A new version of LEED EB was recently introduced, and through our analysis of numerous projects we found the current version to be more favorable than the newest release. After June 26, 2009 you will not be able to register for the more favorable version of
LEED EB.

Registration does not obligate a property owner to proceed with certification; rather, it provides a choice as to which rating system they would prefer to use for project certification. The fee to register a project is $450.00. Anyone interested in registering a project should email gary.thomas@cbre.com.

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