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Market Impacts of Green Building Labeling UC Berkeley December 2, 2009. Doug Gatlin Vice 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:
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Market Impacts of Green Building Labeling UC Berkeley December 2, 2009 Doug Gatlin Vice President, Market Development U.S. Green Building Council Test
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
How to Overcome Persistent Barriers? • Elements of comprehensive approach: • Standard Method for Assessing Performance • Credible Set of Implementation Guidelines • Training and Credentialing of Experts • Public Recognition/Disclosure
How Not to Do It Hospitality Sector • One Industry • 20 Brands • 160 Green Labels
Building Labeling: Two Main Approaches • Asset Rating (Design Characteristics) • Operational Rating (Actual Performance) • LEED Uses Both
Awareness into Action Performance Criteria + Brand Recognition = Market Adoption
Familiarity with LEED National Real Estate Investor 2009 Green Building Survey
LEED Market Uptake Year over year Registrations through September 2009
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.