3: Marketing mileage.
Many studies and surveys have demonstrated that tenants increasingly expect smart building features, including zoned HVAC, sophisticated equipment maintenance alert systems, advanced security systems and green buildings. An improvement in sustainability makes an office building more desirable to tenants and can in turn justify collecting higher rent, as well as increase a building’s competitive advantage and occupancy rates. And when the building is sold, sustainable investments can be recouped in an increased sales price. In fact, a 2011 study by Eichholtz, Kok and Quigley indicated the premium for LEED-certified or Energy Star-labeled buildings is approximately 13 percent.