Could Leasing Office Space in a LEED-CERTIFIED and/or BOMA BESt building be better for your bottom line?
Protecting the environment and “Going Green” have been ongoing fads, particularly within the last decade. Some companies have made it their mission to be environmentally responsible and publicize this intent in order to appeal to current and potential clients that share the same enthusiasm of going green. Government programs like Ontario’s Feed-in Tariff (FIT) program were even established to incentivize the increased use of renewable energy sources (solar, wind, waterpower, biomass, etc.) for home owners, building owners, and businesses in general aiming to use renewable energy sources to power their operations while tying into the grid…the results of which are apparently paying off. But what about organizations that lease office space? Will leasing office space in a building that is LEED (Leadership in Energy and Environmental Design) and/or BOMA BESt (Building Owners and Managers Association Building Environment Standards) certified be better for you, the lessee’s (i.e. tenant’s), bottom line?
Well, a recent investigation reveals that tenants of LEED-CERTIFIED buildings can experience – at least indirectly– some positive effects towards their bottom line in three areas:
Productivity – LEED-CERTIFIED office buildings are generally designed to have larger windows, more open spaces, and significantly better air quality compared to non-certified buildings. For the tenant, this translates to increased comfort, increased brain (innovative and creative) activity, a happier environment and better working spaces for employees, which in turn translates into increased productivity. Ch-Ching!
Marketability & Image Reinforcement – Tenants that market themselves as being socially responsible to the environment would only strengthen their position by being in an LEED-CERTIFIED building. When clientele visiting the office sees that the building they are entering is LEED-CERTIFIED, it will send a subconscious message to their brain that your company is likely to be trustworthy because it is consistent with the image set forth in its marketing strategy, “one that stands by what it says and believes”. More trust means ease in closing of sales leading to potentially more business with existing clients, or referrals leading to growth with new clients. Ch-Ching!
Costs – I would be remiss if I did not address costs. LEED-CERTIFIED office buildings save millions of dollars in energy consumption on an annual basis. For tenants, this could translate into lower utility costs per square foot if utilities are somehow treated separately from the actual lease rates within a lease agreement. As for the lease rates themselves, recent studies have shown that lease rates for office spaces in LEED-certified buildings are currently higher than in similar non-certified buildings simply because their unique sustainability increases the overall market value of the building. However, demand for more green-friendly or sustainable commercial properties means that LEED-CERTIFIED and BOMA BESt certified buildings will eventually become the standard for all commercial office buildings, thus the competition to attract and retain the best tenants may result in lease rates eventually declining.
Leasing an office space that is LEED-CERTIFIED and/or BOMA BESt certified has its benefits. Whether direct or indirect, large or small, even a tenant’s bottom line can experience a positive impact on its bottom line when leasing in an LEED-CERTIFIED building.
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DJ Mcgauley and Associates Inc. is your Office Space Planning, Renovations and Relocation Project Management Company of choice. If a renovation or relocation of your office space is in your plans, please contact us to arrange a no-obligation site meeting. By the end of that meeting, you will know all that would be required to make your office renovation/relocation project a successful reality.
Call 416-239-1931, email [email protected] or visit our website for more information and to complete our contact form
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References:
IESO, Ontario Power Authority, FIT Program, http://fit.powerauthority.on.ca/fit-program
Fergusen, Robert, Multibriefs Exclusive Content, Benefits of LEED certification for Business Headquarters, http://www.multibriefs.com/briefs/exclusive/benefits_of_LEED_certification.htm
Clark, John, Property Biz Canada, August 11, 2016, How Many Red Buildings Do You Have in your Portfolio?, http://renx.ca/many-red-buildings-portfolio/
Bentall Kennedy News and Media, October 6, 2015, Ground-breaking research finds that green office buildings deliver higher income and value, http://www.bentallkennedy.com/news-2015-10-06.php
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