LEED (Leadership in Energy and Environmental Design) is a green building rating system that provides a framework for building healthy, highly efficient and cost-effective green buildings. LEED may be applied to a wide range of building projects, including new buildings, interior rebuilds, building operations and management, and the core and shell of a building.

The LEED rating was developed by the U.S. Green Building Council, a membership-based nonprofit that promotes sustainability in building design, construction and operation.

In practical terms this means using fewer natural resources, energy and water in the building and ongoing operation of a commercial building.

Quick Quiz: What do the One Citi NY-Greenwich, 30 Hudson Yards, and 5 Bryant Park buildings all have in common?

Answer: Each is either a Gold or Platinum LEED-certified development. They are not alone. According to the U.S. Green Building Council, the number of LEED-registered and certified commercial buildings now exceeds 100,000.¹

Set to Grow

The green building market is set to experience strong growth. In a recent survey of individuals and companies involved in building and construction, 42% indicated that the percentage of green building activity will represent more than 60% of their total business in 2024, up from 28% in 2021. The green building activity share is even higher in the U.S., with 48% of respondents saying that green building activity will make up more than 60% of their business in 2024, an increase from 34% in 2021.²

Reasons to Go Green

There are many reasons for the growing trend toward green buildings. According to the Dodge Construction Network, a leading data and analytics provider to the construction industry, the top reasons include:

• Client Demand
• Environmental Regulations
• Lower Operating Costs
• Healthier Buildings
• Future-Proofing Assets
• Increased Quality Assurance Through Green Certification Process

Green buildings also tend to be well received by the local community, the city planning council approval bodies and future tenants.

The economics of green building can be very attractive. For instance, LEED buildings generally have an almost 20% lower annual maintenance costs (green retrofits usually realize 10% savings in the first year), while LEED buildings often can attract higher rent from tenants and add a premium value versus non-LEED buildings.⁴

Sources:

1. https://www.usgbc.org/articles/leed-reaches-new-milestone-surpasses-100000-commercial-green-building-projects
2. https://proddrupalcontent.construction.com/s3fs-public/WorldGreen-2021-SMR-29Oct.pdf
3. https://proddrupalcontent.construction.com/s3fs-public/WorldGreen-2021-SMR-29Oct.pdf
4. https://www.usgbc.org/press/benefits-of-green-building

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