Having LEED certified office space is steadily becoming a top priority with Class A commercial office space tenants.
LEED, which is an abbreviation for ‘Leadership in Energy and Environmental Design’, along with the Energy Star certification, identifies office space that is ‘green’ or ‘efficient’.
Established in 2000 by the U.S. Green Building Council, the LEED certification was developed in part to help office building investors, developers and property managers implement and maintain sustainable energy practices.
A little over 10 years ago the number of LEED certified office building stood at just 5%. Now, according to the most recent National Green Building Adoption Index, the amount of green or energy efficient office space now stands at 38% across 30 markets in the U.S.
Growing Demand For Office Space
Much of the recent demand for Class A office space in the U.S. and Canada is being driven by the high-technology industry. And it’s not just in Silicon Alley, Silicon Valley, or Silicon Beach where demand is strong
High-tech employers are finding that they need to go where the well educated employment bases are rather than trying to recruit workers to come to them. This is a flip-flop from a generation ago when employees have to go where the jobs were.
As a result, demand for office space is growing in secondary and tertiary markets in North America where the work force has the qualities that high-technology employers seek. An added bonus to the employer is that prime office space in these markets tends to be much more affordable than in the higher-priced markets of California and New York.
Why LEED Certified Office Space Is Important To Tenants
A significant percentage of tenants that are leasing today’s office space are in the high-technology industry, sometimes also called STEM tenants. The terms ‘green’, ‘LEED certified’, and ‘energy efficient’ convey a certain status and have a psychological appeal to this type of tenant. That’s in addition to the obvious cost savings of leasing LEED certified office space.
My recent article on How To Get The Most From Your Freelance Real Estate Copywriter discussed the importance of knowing your target audience. LEED certified office space is a perfect example of this. It offers a way to get inside the head of your audience while increasing the appeal of your message at the same time.
The demand for green office space is a trend that’s still beginning. It’s quite likely that in the not-too-distant future in order for office space to be Class A the property will need to be LEED certified.
If you’re not familiar with how to market to tenants who are looking for LEED certified office space it’s not too late to start learning.