March 2016 — Multifamily Properties Quarterly —
Page 17
Sustainability
G
reen apartment buildings
are worth more, according
to the U.S. Green Building
Council. Recent research
shows that the well-known
LEED Certification Program helps
developers build green buildings
that save energy, water, natural
resources and money, all while
amplifying the human health and
well-being of their residents and
workers. Our team wanted to dive
in and discover more about this
unique certification process and the
many benefits it delivers to multi-
family developers, owners and resi-
dents.
To receive LEED certification,
building projects are required to
satisfy prerequisites and earn points
to achieve different levels of certi-
fication. The certification process
provides independent verification of
a building’s green features, allowing
for the design, construction, opera-
tions and maintenance of resource-
efficient, high performing, healthy,
cost-effective buildings. There are
four levels of project certification:
LEED Certified, LEED Silver, LEED
Gold and LEED Platinum.
Projects earn points across nine
basic areas that address key aspects
of green buildings:
1. Integrative process
2. Location and transportation
3. Sustainable sites
4. Water efficiency
5. Energy and atmosphere
6. Materials and resources
7. Indoor environmental quality
8. Innovation
9. Regional priority
According to the USGBC, LEED is
the triple bottom
line in action, ben-
efiting people, the
planet and profit.
Owners can save
money on con-
struction costs and
utilities, as well as
maintenance and
repairs over the
life of the build-
ing, while tenants
benefit from lower
energy and water
bills, quieter units,
improved comfort,
cleaner air and a
healthier indoor
environment, said
Carl Seville, a well-
known LEED certi-
fication consultant
and certifier. Lower
utility costs, in turn,
can lead to easier
tenant acquisition
and better reten-
tion.
Tenants at High-
land Park Apart-
ments in Denver,
a LEED Gold certified multifamily
property, use nearly 38 percent less
water and 25 percent less energy
than comparable non-LEED certified
properties. Certification also helps to
attract quality tenants and renters,
said Bruce Heitler, the project’s devel-
oper.
Statistics prove that today’s renters
are willing to pay more to live in a
LEED certified community. A recent
study from the University of Cincin-
nati found that certified multifamily
properties earn 8.9 percent higher
rent than comparable properties that
are not certified. Another study by
CoStar found that LEED certified mul-
tifamily properties could command
up to a 24 percent rent premium.
And a recent Nielsen survey found
that 66 percent of global respondents
say they’re willing to pay more for
products and services that come
from companies that are committed
to positive social and environmental
impact, up from 55 percent in 2014
and 50 percent in 2013.
There are additional financial ben-
efits to certification. For example,
under Fannie Mae’s new Multifamily
Green Building Certification Pricing
Break program, they offer a 10 basis
point interest rate discount to LEED
certified properties.
Multifamily investors continue
to seek out LEED certified proper-
ties, bolstered by premium rents
and lower expenses, enlarging their
bottom-line profits. LEED certified
properties like Solera and Cadence in
Denver have achieved record-setting
prices with recent sales. When we
look toward the future, we are sure
to see more developers and inves-
tors embracing green building ini-
tiatives like the LEED Certification
Program.
s
John Blackshire
Associate broker,
Transwestern,
Denver
TomWanberg
Senior vice
president,
Transwestern,
Denver
Highland Park Apartments is a LEED Gold certified property that uses nearly 38 percent
less water and 25 percent less energy than comparable non-LEED certified properties.
