Dallas-Fort Worth is being recognized for its “green” office buildings. The city ranked 17th on a list of the greenest office markets in the United States, according to CBRE’s fourth annual Green Building Adoption Index.
The report showed that 31.7 percent of Dallas-Fort Worth’s market qualified as “green”—holding either an EPA Energy Star certification, LEED certification, or both. The report also showed that the market has embraced Energy Star labeling far more—16.5 percent more—than LEED certification. Whereas Energy Star is a certification for energy-efficient buildings, LEED is a broader certification for environmentally-friendly, or “green” buildings, but does not necessarily guarantee energy efficiency.
The market’s progress toward energy efficiency has markedly affected vacancy rates and asking rent rates. Of the 6 million square feet of office projects currently underway in Dallas-Fort Worth, the majority are expected to be either LEED-certified or energy efficient. Energy Star buildings are seeing increasing demand from tenants, with an overall vacancy rate that is 2.3 percent lower than the overall vacancy rate of 18.6 percent in DFW. At the end of 2016, the average asking rate for available space within green buildings was 12.5 percent higher than the overall average asking rate in DFW.
Dallas was one of the first major cities in the United States to pass comprehensive green building standards for both new commercial and residential construction. For the third year in a row, the city has placed seventh on Energy Star’s Top Cities list, maintaining an average cost savings of $46 million, according to the EPA. Dallas-Fort Worth International Airport was also recently recognized with the EPA Climate Leadership Award.
Chicago, San Francisco, and Atlanta claimed first, second and third, respectively, in the recent report. Across the nation’s largest markets, the percentage of commercial office space certified as green reached 38 percent at the end of 2016—up from less than five percent in 2005. Of all buildings surveyed, 10.3 percent are Energy Star-labeled, while 4.7 percent are LEED-certified.
