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Attracting Commercial Tenants in Denver with Green Modifications

May 4, 2016

There is no shortage of commercial real estate options in Denver. It’s a fact that Coloradans in general are very aware and concerned about our impact on the environment. Constructing green buildings or making environmentally friendly modifications are likely to give you a broad range of interested renters. The experts at The Sherman Agency can assist you in creating a tenant profile and constructing a marketing plan to attract your ideal tenants. Based upon this profile, we can also help you assess how much of a benefit environmentally friendly modifications would be for you.

Modifying or building using LEED, (Leadership in Energy and Environmental Design) or EnergyStar protocols is not only good for the planet, but it might be beneficial for attracting and maintaining quality commercial tenants as well. In addition to karma points, it will pay dividends in the form of tax breaks, incentives, and rebates, as well as better occupant satisfaction and retention.

Cost Benefits

The GSA, (Government Services Administration) oversees government buildings and real estate. It has reported that green buildings use up to 45% less energy, 39% less water, and have up to 53% lower maintenance costs. Buildings with lower energy costs can generally command higher rents and also higher selling prices. It is estimated that buildings that adhere to LEED standards rent for over over $11 dollars per square foot more than their non-LEED counterparts and have a 3.6% higher occupancy rate. Sale prices of LEED properties are an average of an astounding $171 more per square foot.

Tax Breaks
There are a great many tax breaks associated with sustainable building as well as efficiency modifications. Many cities will waive permit fees for environmentally friendly developing. We recommend speaking to your tax professional about specific options that may be available to you. For a general overview of state tax incentives you can check out DSIRE’s website and find incentives by state. Some possible improvements that are eligible for tax credits are:
  • Solar or more efficient water heat
  • Solar thermal electric
  • Photovoltaics
  • High efficiency lighting
  • Geothermal heat pumps
  • Wind Turbines
  • Fuel cells using renewable fuel
  • Water conserving bathroom fixtures
Assistance for Modifications
Many cities offer free training or planning assistance for energy improvements. There are also several sustainability grants available annually to help with purchase and installation of energy efficient systems. Contact the Partnership for Sustainable Communities for help finding grants that your business or property may be eligible for. In addition to free grant money, your business may be eligible for financing through a revolving sustainability loan fund. These funds have been allocated for low interest loans for those wishing to build new green commercial properties or renovate existing spaces to be more planet friendly.

The commercial property experts at The Sherman Agency can discuss the pros and cons of remodeling to LEED or Energy Star standards and help come up with other proactive and viable strategies for attracting and retaining premier level tenants. We can also assist in finding you a sustainable property of you are looking for an environmentally friendly spot for your business. Call us at 303-572-8778 to set up an appointment with one of our commercial brokers or property managers today.