Top 6 Advantages of Leasing Space in a LEED-Certified Building

LEED-certified properties are still considered somewhat of a novelty in the commercial real estate market and many corporations are hesitant to explore the option of leasing space in one due to the typically higher rental rates. There are, however, a number of advantages that come with operating your business out of a green facility, including financial benefits that can offset the cost of rent, while freeing capital for business growth.

The health and wellness benefits a green office can provide for your employees further make LEED buildings a viable leasing option to consider for the future. Let’s review some of the advantages of green properties in more detail.

1. Utility Cost Savings

One of the most appealing aspects of LEED-certified facilities is the potential operational cost savings they can deliver to corporate tenants. Such properties have been designed and constructed to use less energy and water than traditional buildings. According to The Department of Energy survey of 22 GSA-operated green buildings, LEED-certified properties were found to consume 25% less energy and 11% less water. Furthermore, the survey reports that those buildings also have nearly 20% lower maintenance costs than traditional commercial buildings. These numbers translate into lower operating expenses for the building tenants, and oftentimes the savings are enough to offset the higher rent of LEED buildings.

2. Healthier Work Environment

LEED-certified buildings are not only better for the environment, but also for their occupants. The use of non-toxic building materials, natural light access, and improved outdoor air flow creates a healthier indoor environment for tenants. Considering that most people spend about 90% of their time indoors, green buildings can have a significant positive impact on public health. In fact, the National Center for Biotechnology Information found that occupants of green buildings tend to suffer less from headaches, asthma attacks, allergies, respiratory illnesses, depression, and stress.

3. Increased Employee Productivity

A direct result of the health benefits of LEED buildings is improved employee attendance and productivity. Fewer illnesses mean less absenteeism. Not only do occupants feel better physically, but they feel happier, more productive, and fulfilled at work. In fact, the U.S. Green Building Council (USGBC) found that more than 90 percent of green building employees they surveyed said they are satisfied on the job.

4. Tax Benefits and Incentives

State and local governments provide various economic incentives and tax benefits to corporations leasing space in LEED-certified buildings. Since rental rates in such properties are typically more expensive, the incentives are meant to offset the higher costs of leasing space in one. Reducing the barriers to entry with benefits would allow more companies to operate out of green facilities and use the savings generated through lower utility costs to reinvest in the business and create more jobs.

5. Free PR Boost

We live in an age when corporations are constantly under the microscope for their social, environmental, and even political policies and initiatives. Social media, in particular, has empowered consumers to stay abreast of corporate activity, both good and bad. Choosing to lease space in a LEED-certified building can certainly boost your corporate image, generate good publicity, and even attract new customers. A recent study by IBM and the National Retail Federation found that nearly 8 out of 10 consumers globally said they value sustainability, and almost 70% of North American respondents said that sustainability and eco-friendliness are important traits for a brand.

6. Support Sustainability

Leasing space in a green building shows your organization’s commitment to sustainability and combating climate change. Aside from the good publicity you can gain from it, your move will have an actual meaningful impact. In addition to the energy and water savings we discussed earlier, green buildings have lower CO₂ emissions and are credited with diverting millions of tons of waste from landfills.

If you are considering a move from a traditional office to a LEED-certified property, you should contact one of our expert tenant reps, who can find the right green facility for you, help you uncover all the economic incentives available in your state, negotiate the best lease terms, and be by your side as your organization’s real estate needs change.