Learn About Green Investing

Robert S. Smith, of Oregon 1031 Investments, works with many clients who want to make sustainable investments. Here are his answers to questions frequently asked by those clients.

What is environmentally sustainable real estate investing?
What makes a real estate investment green?
What are some examples of environmentally sustainable commercial buildings?

What is environmentally sustainable real estate investing? Many investors are discovering that they can "do well by doing good" in terms of property investment choices. These investors are committed to going beyond the minimum legal requirements to address environmental issues. Many are choosing to protect Earth’s resources such as land, water and natural habitats by investing in environmentally friendly commercial properties. In fact, in a recent survey of real estate executives conducted by the Urban Lands Institute, 57% of the respondents said they are promoting energy conservation, water conservation or recycling in properties they own or manage. Environmentally sustainable real estate investing involves making a commitment to development or buildings that incorporate one or many environmentally sound principles, including community smart growth planning, efficient use of natural resources and energy, reduced indoor and outdoor pollutants, use of recycled or “green” building materials, and greater harmony with local ecosystems. Back to Top

What makes a real estate investment green? Investors seeking to promote green practices may seek existing structures and that can be retrofitted to cut energy use and reduce their environmental footprint. Others might invest in new buildings that incorporate green design features such as use of natural light, proximity to public transit, energy efficient design, use of green building materials and reduction of emissions. A simple way to be assured that a real estate investment is environmentally sustainable is to look for certification by the Leadership in Energy and Environmental Design (LEED) Green Building Rating System™, the nationally accepted benchmark for the design, construction and operation of high performance green buildings. LEED gives building owners and operators the tools they need to have an immediate and measurable impact on their buildings’ performance. LEED promotes a whole-building approach to sustainability by recognizing performance in five key areas of human and environmental health: sustainable site development, water savings, energy efficiency, materials selection and indoor environmental quality. These are all important criteria for many of our clients at Oregon 1031 Investments. Back to Top

What are some examples of environmentally sustainable commercial buildings? Ecotrust's Jean Vollum Natural Capital Center in the Pearl District of Portland, Oregon, earned a gold-level LEED certification. It was the first gold-rated building in Oregon and the first gold-rated historic restoration in the nation. Ecotrust's renovation of the brick and timber warehouse, originally built in 1895, respects the character of the original structure while incorporating environmentally innovative materials and techniques. The redevelopment contractor, Walsh Construction, has estimated that more than 98% of the construction waste has been recycled or reclaimed, a Portland city record. The building also features an “ecoroof” that, together with street-level landscaping, filters and absorbs most, if not all, of the site's rainwater, eliminating runoff to the overburdened Willamette River. In Cambridge, Massachusetts, the 12-story corporate headquarters of Genzyme earned a platinum rating, LEED’s highest certification level. As a result of the building’s green features, Genzyme spends 42% less on energy and uses 34% less water than it would for a similar traditional building. On average, green buildings save 10% of utility costs each year -- and sometimes much more. Even more important, as sustainable materials and technology improve, green construction is sure to become more cost effective. FACT: Existing construction is getting an eco-lift along with the new. Developers and some real-estate investment trusts (REITs) are purchasing half-empty office buildings and renovating them according to green standards. That can often bring 3% higher rents and a 7.5% increase in a building's value, according to McGraw-Hill's 2006 Smart Market report. Back to Top