As companies close and move overseas, there is a glut of former corporate headquarters on the market. From homebuilders to car dealerships, the large number of closures have left their mark on the commercial property landscape. Adding to this are the number of companies that have moved from a location that may have been advantageous in an up-market (like California), and now are shopping for other locales that are willing to offer tax incentives and other concessions to attract their business (like Michigan).
The remaining structure can be a hard sell, particularly if it is easily identified with a particular industry – like for instance, the car dealership. In better times, one could hope that your lot and building would be picked up by a similar business in the same industry, but in this market it would be wise to try and make the building attractive to a diverse array of businesses. If you are holding a former company headquarters, what can you do to get that property on the radar of the buyers? Beyond sprucing up the landscaping and slapping on a new coat of paint, it may be worth it to explore the possibility of getting your building Green certification.
The term “Green Building” brings to mind very contemporary construction with leading-edge architecture and solar panels on the roof, but these flagship constructions can be misleading, giving the impression that only new construction can be certified as a Green Building. The truth is that a new building is going to start at a disadvantage for all the new materials (new wood, new resources, and the carbon footprint of all fresh materials), whereas an older building that re-uses its existing resources will have a green advantage off the bat.
The best way to promote a building's environmental advantages, is to get Leadership in Energy & Environmental Design (LEED) Certification. LEED is an international accrediting body working in conjunction with the US Green Building Council to improve the environmental impact of professional and residential buildings, from energy savings and water efficiency to the use of local resources in the construction or renovation. It's a process very similar to Energy Star for household appliances.
Buildings are ranked on a 100 point scale, with a score of 40 points to be considered “Certified” all the way to the Platinum level of over 80 points. Depending upon the building and the resources available, certification may be possible with only a few improvements. IT services company Rackspace achieved Gold LEED levels with it's new headquarters, a former mall, by collecting rainwater to use for landscape irrigation and designating a front row of parking places for energy efficient vehicles. They also received points for recycling the materials that were thrown out during renovation.
Demand for LEED cert buildings is high right now, with Green Building a hot topic, and many corporations only looking at certified buildings for possible relocation – and it may be cheaper than you thought. Besides water usage and parking adjustments, much can be done with climate control and insulation. A commercial property that can be re-insulated with spray foam insulation can see an improvement of 60% in climate control costs, which will pay for itself in a few years on a building you own, but also allow for a higher value on a property for sale.
A commercial appraiser in San Antonio confirmed that even if the LEED certification doesn't increase the selling price of your property, it may result in a sale while others stagnate. “In a market like this, just getting a buyer interested is a win. A green building has a better chance of selling, while the other 99 are going to sit another year.”
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