Accelerated Asset Appreciation
Commerical real estate valuations are based on replacement value, market conditions and CAP rates. If your facility has tenants, you most likely utilize CAP rates to value your building when preparing your balance sheet. In 2009, the occupancy of a Class A LEED facility was 4% higher that for Class A non-LEED facilities. As time continues, non-LEED facilities will be need to be converted to LEED inorder to bring in knowledgable tenants. This is because they understand that NNN leases (like most leases are) are more tenant-friendly in LEED facilities because of the 30% energy consumption savings. For this reason, many LEED facility owners realize increased revenues of 10-30% to cover the energy use benefit a tenant has by officing in their LEED building.