Test

Market Impacts of Green Building LabelingUC BerkeleyDecember 2, 2009

Doug GatlinVice President, Market Development

U.S. Green Building Council

What Does a Building Label Do?

•Inform

•Motivate

•Educate

Barriers to Green Performance in Commercial Real Estate

The Broader Context:

•Lack of standardization•Relatively few sales transactions•Localized industry – mostly small firms•Leasing structures – perverse incentives

Elements of comprehensive approach:

•Standard Method for Assessing Performance

•Credible Set of Implementation Guidelines

•Training and Credentialing of Experts

•Public Recognition/Disclosure

How to Overcome Persistent Barriers?

Hospitality Sector

• One Industry

•20 Brands

•160 Green Labels

How Not to Do It

Asset Rating (Design Characteristics)

Operational Rating (Actual Performance)

LEED Uses Both

Building Labeling: Two Main Approaches

Performance Criteria +

Brand Recognition =Market Adoption

Awareness into Action

Familiarity with LEED

National Real Estate Investor 2009 Green Building Survey

LEED Market UptakeYear over year Registrations through September 2009

Sector2008 YTD

Reg. Count2009 YTD

Reg. Count

Reg. Count Growth over

Prior

2008 YTD Reg. GSF

2009 YTD Reg. GSF

GSF Growth over Prior

LEED CI796 1,067 34% 41,613,413 150,311,020 261%

LEED CS776 711 -8% 251,604,254 323,203,462 28%

LEED EB1,170 1,903 63% 448,112,112 521,152,058 16%

LEED NC3,048 5,856 92% 580,013,015 1,052,147,471 81%

LEED Retail (CI)

74 76 3% 306,345 118,463 -61%

LEED Retail (NC)

10 49 390% 200,945 4,226,256 2003%

Grand Total 6,188 10,105 63% 1,349,748,081 2,099,392,360 56%

Year over Year Growth through September 2009

Sector2008 YTD Cert.

Count2009 YTD Cert.

Count

Cert. Count Growth over

Prior2008 YTD Cert.

GSF2009 YTD Cert.

GSFGSF Growth over Prior

LEED CI 116 366 216% 6,179,703 15,439,290 150%

LEED CS 34 155 356% 7,749,354 36,782,348 375%

LEED EB 88 184 109% 17,402,481 90,363,810 419%

LEED NC 369 724 96% 49,273,574 79,883,199 62%

LEED Retail (CI) 45 79 76% 74,344 280,971 278%

LEED Retail (NC) 47 4,037,229

Grand Total

652

1,564 140%

80,679,455 227,395,967 182%

EB vs. NC Growth Comparison

• More EB projects registered at the end of the 2.5 year period despite starting at a lower position

• EB crossed 1B GSF after 28 versus 47 months for NC.