Green design and sustainability serve as important catalysts for modern building design and construction. The end result for each project must strike a balance between the up-front project cost, the potential life cycle return on investment, and improved environmental performance.

Leadership in Energy & Environmental Design (LEED) provides an objective benchmark for classification and evaluation of green-building practices and their benefits. LEED was created to define “green” through standardized measurement as well as preventing “green washing” (false or exaggerated claims). In addition, LEED provides whole-building integrated design processes, recognizes leaders in the movement and raises consumer awareness to transform the marketplace.

LEED projects are on the rise. In 2002, 80 million square feet of new construction were certified nationally. That number jumped to more than 518 million square feet in 2006. There are now more than 30,000 LEED-accredited professionals working on 750 million square feet of LEED projects across the country. By specializing in LEED certified development, project managers can dramatically reduce the energy consumption of commercial and residential buildings in the United States by as much as: 65 percent of total electricity; 36 percent of total energy use; 30 percent of total greenhouse gas emissions; and 12 percent of potable water consumption.

The U.S. Green Building Council is the developer and administrator of the LEED Green Building Rating System. The council’s core purpose is to transform the way buildings and communities are designed, built and operated, thus enabling an environmentally and socially responsible, healthy and prosperous environment that improves the quality of life.

Green development is an integrated and interdisciplinary approach to design and construction using proper planning for the location of facilities, efficient utilization of natural resources, optimization of building systems, protection of employee health and safety and applying life-cycle analysis to minimize cradle-to-grave impacts.

Design and construction practices that significantly reduce or eliminate the negative impact of buildings on the environment and occupants fall into five broad areas:

• Site Ð Sustainable site planning;
• Water Ð Safeguarding water and water-efficiency;
• Energy Ð Energy-efficiency and renewable energy;
• Materials Ð Conservation of materials and resources; and
• Indoor Air Quality Ð Indoor environmental quality.

The LEED point system is based on the following categories: Sustainable sites; water-efficiency; energy and atmosphere; material resources; environmental quality; and innovation and design process.

Rating System

There are four levels of certification: LEED Certified; LEED Silver; LEED Gold; and LEED Platinum. The rating system uses codes that are already in existence as a baseline for building guides. Most commonly, it uses existing ASHRAE (American Society of Heating, Refrigerating and Air-Conditioning Engineers) codes.

LEED certification is a third-party validation of a project’s (building or interior) performance. LEED-certified projects blend environmental, economic and occupant-oriented performance. They cost less to operate and maintain; reduce the impact on the environment; are energy- and water-efficient; have higher lease-up rates than conventional buildings in their markets, as well as increased building valuation and return on investment; enhance occupant well-being and comfort; and are a physical demonstration of the values of the organizations that own and occupy them.

LEED certification does not have to cost a penny more than constructing a non-environmentally sound building. LEED projects completed and certified to date demonstrate that you can achieve certification and reap its many benefits with a common-sense approach to design and no additional dollars. Depending on your green building strategy and the level of certification you want to achieve, however, there may be a long-term ROI associated with additional green features that merit an investment in first costs.

In terms of construction premium costs, LEED certification costs nothing; LEED Silver can cost up to 2 percent of a project’s cost, with a payback time of two years; LEED Gold ranges from between 4 percent and 7 percent, with an expected payback time of within seven years; and LEED Platinum costs within the 6 percent to 20 percent range.

LEED-certified development has transformed the market, benefiting landlords and tenants. The landlord experiences lower operating costs, higher occupancy and competitive lease rates. The user benefits from a boost in recruiting and retention of talent. Sustainable and green development makes perfect sense both economically and environmentally.

Tom O’Connor is a vice president at the Boston office of Jones Lang LaSalle (www.joneslanglasalle.com), a real estate money management and services firm.