Should I LEED certify my building?

The Additional Cost of LEED Certification – The real cost of LEED certification is determined by the costs of certification beyond designing a green building. For example, to design a green building, Enermodal provides a comprehensive list of green design services including design workshops, energy modelling, design drawings and specifications, and site reviews of contractor work. All of these services are required for a green building whether or not LEED certification is pursued. The only additional work to certify is to assemble the LEED documentation and go through the USGBC certification process. In Enermodal's wide experience, total LEED-related costs are less than 0.3% of typical construction costs, or about three months’ of operating energy costs.

To put the costs of LEED certification in context, it is important to appreciate the four main benefits of LEED certification. These benefits apply to any type of building in any location.

LEED Certification Acts as a Quality Control System – With its third party review and certification process, LEED, is a quality control system that instils a rigour to the design and construction process. While most building owners begin a project with a desire to do their part for their environment, the conservative nature of the design and construction industry limits innovation and produces conventional building designs, materials, and construction techniques. This happens when substitutions of techniques and materials are made based on what is easily obtained or familiar, and not based on what is best for the environment. When designers and constructors know that their work will be reviewed by third party auditors, they are more likely to deliver the building that the owners want.

LEED Certification Protects Green Investment – LEED buildings cost more initially (primarily for energy and water saving equipment); however, the additional cost can be recouped in 3 to 10 years due to decreased energy and operating costs. These savings will only be realized if this equipment is properly installed and commissioned. LEED certification requires that applicants document that the proper equipment was installed and acceptable commissioning procedures were followed. For building owners who are basing financing on targeted building performance and operating costs, the commissioning activities required by LEED certification provide a measure of investment protection.

LEED Certification Provides Higher Building Value – Recent studies have shown that LEED certified buildings command significantly higher rental rates and therefore higher value. Those looking for a new home or workplace aren’t just looking for four walls. Green living and work conditions are in high demand and some tenants are beginning to demand LEED certified buildings. A building that “was designed to LEED” cannot be advertised as a LEED building because LEED is a trademark. Thus, only a true LEED certified building can command a higher value in the marketplace.

LEED Certification Provides Great PR Value – The media, shareholders, employees, and the public are eager to hear about green initiatives. LEED is a recognized name that gets attention.¹ The number of LEED certified buildings is still relatively small, so it is still considered news when a building is certified (especially to a high level like LEED Gold or Platinum). Many companies have environmental mission statements and LEED certification proves that they are “walking the talk.” Plus, in all likelihood some of your competitors are thinking about getting (or already have) certified – and no one wants to be the last one to follow suit.

¹ CoStar Study Finds LEED, Energy Star Bldgs. Outperform Peers: Demand in Marketplace for Sustainability Creates Higher Occupancy Rates, Stronger Rents and Sale Prices in 'Green' Buildings (May 26, 2008)