Philadelphia – August 28, 2018–Philadelphia slipped two spots on the annual U.S. Green Building Adoption Index by CBRE and Maastricht University, coming in at number thirteen this year.
The CBRE study found green certified office space across America’s 30 largest metros has reached 41 percent of market totals – the highest in the index’s history. “Green” office buildings in the U.S. are defined as those that hold either an EPA ENERGY STAR® label, USGBC LEED certification or both. According to the report, 11.5 percent of all buildings surveyed are ENERGY STAR labeled, while 5.2 percent of buildings are LEED certified, both at all-time highs in the five-year study.
In Philadelphia, the percentage of certified space has steadily declined the past three years from a high of 38.4 percent in 2015 to 36.9 percent this year. One area of specific interest is the continued decline in LEED participation, falling to only two percent of buildings and less than 10 percent of square footage. But the overall market metrics are saved by ENERGY STAR participation, which this year totaled 34.3 percent, a top ten number. Simply stated, ENERGY STARis king in Philadelphia and LEED certification is not often pursued in this market.
“While Philadelphia stats are down slightly, our CBD clients routinely consider both ENERGY STAR and LEED certification as part of their ownership strategy,” said Lawrence Zipf, Managing Director, Asset Services, CBRE.“Owners carefully weigh the economic investment needed to achieve certifications versus the underlying recognition that it is good for our environment, and frequently a competitive necessity to attract or retain tenants.”
Chicago again claimed the top spot with nearly 70 percent of its space green certified. In addition to defending its title as the nation’s greenest city, Chicago saw a difference of nearly six percent with second-place San Francisco, the largest spread ever recorded in the Green Building Adoption Index. Atlanta maintained the third spot with more than 58 percent of all space green certified, while a surging Los Angeles claimed fourth – up from sixth last year. Minneapolis rounds out the top five with 55 percent of office space certified.
| RANK | MARKET | TOTAL # OF BUILDINGS | TOTAL SQ. FT. | TOTAL # GREEN BUILDINGS | % OF MARKET CERTIFIED GREEN |
| 1 | Chicago | 1,435 | 236,516,240 | 265 | 69.8% |
| 2 | San Francisco | 1,386 | 120,434,025 | 286 | 64% |
| 3 | Atlanta | 908 | 132,828,235 | 251 | 58.4% |
| 4 | Los Angeles | 1,664 | 206,051,367 | 363 | 56.3% |
| 5 | Minneapolis | 476 | 69,950,658 | 102 | 55% |
Continued improvement in average energy efficiency for the nation’s commercial buildings also prompted the EPA to change the underlying calculations for ENERGY STAR scoring this year. This change is expected to lower average scores for office buildings by as much as 10 points next year. These changes may have a significant impact on next year’s Green Building Adoption Index rankings, particularly for markets whose ENERGY STAR certifications comprise the bulk of their green space.
“Green building certifications have become an important proxy for sustainable practices, recognized by all stakeholders. Any significant change to one of these major certification programs can have a significant impact on the buildings affected. We will be closely watching for the results,” said David Pogue, CBRE’s Senior Vice President, Global Client Care.
Green Buildings Certification Influencing Capital Markets
CBRE and Maastricht University researchers note that building certification has become a more recognized and important part of a building’s profile. As these programs reach maturity, the capital markets are increasingly incorporating these certificates into loan pricing and alternative financial instruments such as green bonds. And, according to additional research by Green Building Adoption Index co-author Rogier Holtermans, buildings certified by ENERGY STAR and/or LEED have been shown to transact for about 10.1 percent more than non-green certified buildings.
This is the fifth release of the annual U.S. Green Building Adoption Index. Based on a rigorous methodology, the index shows the growth of ENERGY STAR and LEED-certified space for the 30 largest U.S. office markets, both in aggregate and in individual markets, over the previous 10 years. A feature again this year is a geographic mapping platform that highlights the name, location and details of the specific green certification for each building in all 30 markets. View the study’s findings HERE.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBRE), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (based on 2017 revenue). The company has more than 80,000 employees (excluding affiliates), and serves real estate investors and occupiers through approximately 450 offices (excluding affiliates) worldwide. CBRE offers a broad range of integrated services, including facilities, transaction and project management; property management; investment management; appraisal and valuation; property leasing; strategic consulting; property sales; mortgage services and development services. Please visit our website at www.cbre.com.
