Experts: Downturn Won't Stop Green Movement

NEW YORK CITY-The greening of real estate may be the wave of the future, but is the business case for it still viable in the tough business climate of 2009? “Absolutely yes,” said GreenOrder founder Andrew Shapiro at a panel discussion Wednesday evening. “The world has not changed.”

Shapiro explained that the conditions giving rise to the green real estate movement–concerns about climate change, fluctuating energy prices and greater attention to corporate accountability in the post-Enron world–have not disappeared amid the recession. Moreover, sustainable practices can lead to dramatic savings; Shapiro cited the example of his client General Electric, which has saved $110 million in energy costs since greening its factories.

His comments were made in the context of a panel on the market for green leases, one of three discussions that comprised the “Green Building: New Requirements and Incentives” event sponsored by law firm Schulte Roth & Zabel LLP. Ken Rapp, CB Richard Ellis vice chairman, said that market is being driven in part by the younger generation, but added that he sees a split between tenants who make green a top-of-mind priority and those that are mainly concerned with how much the space is going for.