Return On Green: LEED Proves It's Worth In Resale
We've been wondering what happens to a LEED certified building when it goes up for sale. Willl it be lemon (Bitter Lesson) or mango (King of Fruits)? A recent article from Chicago Sun Times of February 20, 2006 provided anecdotal evidence: Mango it is. Here are some excerpts to whet your appetite. "In Chicago office development, "going green" has a double meaning. It's about environmental friendliness, yes, but especially the color of money"... "John Buck Co. was among the first in Chicago to seize upon the trend...It's 51-story 111 S. Wacker building opened last June, and four months later crossed a green milestone. It became the first new office building not designed for a single user to win what's called a LEED gold rating". "...from the landscaping and storm-water collection system on its roof to the recycling system and bicycle storage space in the building's depths...Buck met standards for sourcing construction material nearby, with much of it recycled, and for the design and installation of air-filtration systems and monitors for indoor pollutants".
Now here's a tasty tidbit: "It's getting to the point where if you're not LEED, you won't have the anchor tenants you need to start the building,..."
The Money Quote: "Property records show that the Buck firm and co-investors sold 111 S. Wacker last month to a German investment fund for $386 million. Buck will continue to collect fees for managing the property...That's a nice return on a $270 million project, more than enough to put LEED on more developers' lips".