Friday, September 18, 2009

Does “Green” Construction Affect Net Lease Investments?

By: David Sobelman

Calkain recently published the first of its kind report on environmentally sensitive (“Green”) construction for net lease investments. We found there are obvious benefits for everyone involved in a transaction. The argument from the development community has always been that the costs for building green building do not justify the benefits. However, it has been proven that the proper use of materials and education allow for a green building to be constructed at the same costs, or less, than conventional methods. Additionally, tenants may begin to require green buildings as their costs of operations will decrease and the social stigma of occupying green buildings develops into more of the mainstream. Lastly, landlords and investors will enjoy the benefits because most green buildings qualify for tax breaks and the intrinsic value of the asset will be more marketing in decades to come.

I think it is a proven fact that there WILL be changes in construction requirements as time goes on and more people begin to realize the benefits of green buildings. Some tenants have already begun occupying prototype locations and they are gaining in popularity among various users. See more about this topic at

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