Tenant Intelligence

Commercial Real Estate Resources for Savvy Corporations

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Chris On August - 22 - 2010

Leadership in Energy and Environmental Design (LEED) certified office and R&D space is becoming more and more important to companies. Currently, across the Bay Area, LEED-certified space has a vacancy rate 130 basis points below the overall market vacancy rate of 18.4%. As a result of the increased cost savings and performance of LEED-certified space, the Bay Area has seen a flood of new certifications being awarded over the past several years. San Francisco currently dominates the Bay Area in LEED-certified space with over 14 million square feet; however other markets, most notably in the Silicon Valley, are following suit, with more and more space certified each year.

Cassidy Turley BT Commercial’s Real Green Index report tracks and measures key statistics related to LEED Certified office and R&D buildings and spaces throughout the Bay Area. To view our latest report, please click here Real Green Index 2nd Quarter 2010

3 Responses

  1. Very Interesting article, I am eager to see more on this subject.

  2. John Mahoney says:

    You are right on the mark. Our company, Sustainable Energy Associates, has seen a significnat increase (in interest) from the commercial office and industrial market. Owners offering LEED certified or even Energy Star rated space are renting faster because tenants expect it. Our clients see a break even in less than two years (sometimes even 1) when we combine the maximum PG&E incentives and the Federal Energy Efficiency 179D Tax Deductions (which can be as much as $1.80/sf). Their energy bill will drop between 15% to 25%.

  3. James Osgood says:

    More and more tenants are interested in being socially responsible. Demand for “Green” buildings should become stronger as the market picks up.