LEED certification has emerged as the standard of excellence in many office markets across the country because the principles of sustainable development are closely aligned with the requirements for Class A assets. These high-performance buildings are often the most prestigious in their markets and compete for prospective tenants by not only offering operational efficiencies and an attractive work environment, but also by providing tenants with a means of demonstrating their commitment to environmental conservation.
The latter of these objectives has become increasingly important as a result of the corporate social responsibility movement and the resulting pressure placed on companies to evaluate their performance using economic, social and environmental measures of success. Notwithstanding the aforementioned benefits, real estate investors must evaluate the financial viability of LEED certified projects using traditional valuation methodologies. Continue to full article>