Sustainable Commercial Real Estate Not an Oxymoron

Posted by Andree Iffrig Oct 24, 2008

The terms sustainable and commercial may seem like strange bedfellows when it comes to real estate, but there are enough successful examples of green commercial real estate development to put the lie to the myth that developers don’t care about the environment.

Speakers at the third annual Calgary Real Estate Leasing Conference presented ample evidence that the state of the environment is a genuine concern for developers, architects and tenants across North America. More importantly, there is a sound economic argument for building sustainably.

Sustainable design specialists HOK and Oxford Properties Group recently collaborated on changes to building systems at Metro Centre in Toronto. The building at 225 King St. W. is the first multi-tenant building to qualify for LEED EB (existing building) in Canada. Certified under the U.S. Green Building Council’s new category of LEED EB O + M (operations and maintenance), the office tower is a model of environmental efficiency.

Darryl Neate of Oxford made the financial case for the systems improvements, noting that since their completion, the building has qualified as AAA office space. Originally constructed in 1991, the building has 15 floors and 472,000 square feet. Prior to the decision to improve environmental performance, it was only 50 percent leased. Within a year of the systems changes, it was 95 percent leased.

Other presentations during the conference focused on various aspects of sustainable development in the real estate sector, including green leases and carbon credits. It was clear from the audience’s reactions that the language and benefits of sustainable design still need clarification, but if Oxford is any indication, green commercial real estate is here to stay.

With design shows like MMPI’s Buildex promoting green building, the development community will be getting a firm grounding in the merits and “how to” of sustainable commercial development.