The Southern California markets ranked in the top 20 in both reports
Los Angeles – Los Angeles and Orange County rank among the greenest markets in the country, according to the annual Office Green Building Adoption Index and inaugural Multifamily Green Building Adoption Index by CBRE, Maastricht University and the University of Guelph. Los Angeles ranks fifth and 13th for office and multifamily respectively, while Orange County occupies rank 12th and 18th.
Greater Los Angeles boasts more than 115 million square-feet of green office space, 56.6 percent of its total office stock, trailing only Chicago, Washington D.C. and Manhattan in total green square footage. The market ranked 13th in the inaugural Multifamily Index with 8,123 green apartments, accounting for 3 percent of the institutional market.
Orange County ranked 12th with 38.1 percent of its office space being certified green. The area contains 226 green office buildings, the 10th most of any market. Orange County placed 18th in the Multifamily Index with 4,762 green apartments, which accounts for approximately 2.4 percent of the institutional market.
“Young professionals are increasingly cognizant of their environmental footprint and gravitate towards employers with similar principles,” said Los Angeles-based Executive Managing Director Robert Peddicord. “Companies continue to adapt to the desires of their workforce by providing more environmentally-friendly workspaces. Similarly, multifamily developers have begun to pursue green building certifications in order to attract leasers who are environmentally conscious.”
The 2019 Green Building Adoption Index found green certified office space across America’s 30 largest office markets has reached 42.2 percent, up from 41.9 percent last year, marking a new high.
Chicago took the top spot in the Green Building Adoption Index for the third straight year, with 71 percent of its space green certified. In the Multifamily Index, Denver led with 7 percent of the market’s multifamily apartment units green certified, followed by Washington DC/Suburban Maryland with 6.9 percent.
“We have definitely noticed higher retention rates combined with improved leasing velocity in communities with Green amenities, particularly those with a purposeful intent to reduce waste and conserve energy,” said multifamily professional, Executive Vice President Dean Zander. “That translates into higher pricing, so there’s certainly a benefit to the tenant and investor.”
CBRE, Maastricht University and Universtiy of Guelph researchers, in partnership with the National Multifamily Housing Council, also note that building certification has become a more recognized and important part of a building’s profile in U.S. capital markets. Recent research shows that commercial mortgages collateralized by green-certified office buildings have significantly lower default rates, which implies that it may be beneficial for lenders to factor the energy and sustainability performance of buildings into mortgage pricing.
“Green building continues to be a growing trend, as both tenants and owners seek the benefits of being associated with these properties,” said Spencer Levy, chairman of Americas Research for CBRE and senior economic advisor. “Long-term, these buildings offer real cost savings, making them appealing to owners and investors alike. These buildings are also more attractive to tenants, as many corporate users seek out these properties for their operational and social benefits. As the market has proven, its popularity only continues to grow.”
This is the sixth release of the annual Green Building Adoption Index and the inaugural Multifamily Green Building Adoption Index. Based on a rigorous methodology, the Green Building Adoption Index shows the growth of ENERGY STAR- and LEED-certified space for the 30 largest U.S. office markets, both in aggregate and in individual markets, since 2005.
The Multifamily Green Building Adoption Index shows totals for ENERGY STAR-, LEED-, and National Green Building Standard-certified space for the 30 largest U.S. multifamily markets.
Click here for the full report.
Los Angeles – Los Angeles and Orange County rank among the greenest markets in the country, according to the annual Office Green Building Adoption Index and inaugural Multifamily Green Building Adoption Index by CBRE, Maastricht University and the University of Guelph. Los Angeles ranks fifth and 13th for office and multifamily respectively, while Orange County occupies rank 12th and 18th.
Greater Los Angeles boasts more than 115 million square-feet of green office space, 56.6 percent of its total office stock, trailing only Chicago, Washington D.C. and Manhattan in total green square footage. The market ranked 13th in the inaugural Multifamily Index with 8,123 green apartments, accounting for 3 percent of the institutional market.
Orange County ranked 12th with 38.1 percent of its office space being certified green. The area contains 226 green office buildings, the 10th most of any market. Orange County placed 18th in the Multifamily Index with 4,762 green apartments, which accounts for approximately 2.4 percent of the institutional market.
“Young professionals are increasingly cognizant of their environmental footprint and gravitate towards employers with similar principles,” said Los Angeles-based Executive Managing Director Robert Peddicord. “Companies continue to adapt to the desires of their workforce by providing more environmentally-friendly workspaces. Similarly, multifamily developers have begun to pursue green building certifications in order to attract leasers who are environmentally conscious.”
The 2019 Green Building Adoption Index found green certified office space across America’s 30 largest office markets has reached 42.2 percent, up from 41.9 percent last year, marking a new high.
Chicago took the top spot in the Green Building Adoption Index for the third straight year, with 71 percent of its space green certified. In the Multifamily Index, Denver led with 7 percent of the market’s multifamily apartment units green certified, followed by Washington DC/Suburban Maryland with 6.9 percent.
“We have definitely noticed higher retention rates combined with improved leasing velocity in communities with Green amenities, particularly those with a purposeful intent to reduce waste and conserve energy,” said multifamily professional, Executive Vice President Dean Zander. “That translates into higher pricing, so there’s certainly a benefit to the tenant and investor.”
CBRE, Maastricht University and Universtiy of Guelph researchers, in partnership with the National Multifamily Housing Council, also note that building certification has become a more recognized and important part of a building’s profile in U.S. capital markets. Recent research shows that commercial mortgages collateralized by green-certified office buildings have significantly lower default rates, which implies that it may be beneficial for lenders to factor the energy and sustainability performance of buildings into mortgage pricing.
“Green building continues to be a growing trend, as both tenants and owners seek the benefits of being associated with these properties,” said Spencer Levy, chairman of Americas Research for CBRE and senior economic advisor. “Long-term, these buildings offer real cost savings, making them appealing to owners and investors alike. These buildings are also more attractive to tenants, as many corporate users seek out these properties for their operational and social benefits. As the market has proven, its popularity only continues to grow.”
This is the sixth release of the annual Green Building Adoption Index and the inaugural Multifamily Green Building Adoption Index. Based on a rigorous methodology, the Green Building Adoption Index shows the growth of ENERGY STAR- and LEED-certified space for the 30 largest U.S. office markets, both in aggregate and in individual markets, since 2005.
The Multifamily Green Building Adoption Index shows totals for ENERGY STAR-, LEED-, and National Green Building Standard-certified space for the 30 largest U.S. multifamily markets.
Click here for the full report.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
CBRE Group, Inc. (NYSE: CBRE), a Fortune 500 and S&P 500 company headquartered in Dallas, is the world’s largest commercial real estate services and investment firm (based on 2020 revenue). The company has more than 100,000 employees serving clients in more than 100 countries. CBRE serves a diverse range of clients with an integrated suite of services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
