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What is LEED certification? Does it make a difference to tenants?

What is LEED certification?

LEED certification is the recognized standard for measuring that a building is truly "green."

It is a rating system -- developed and administered by the U.S. Green Building Council, a Washington D.C.-based, nonprofit coalition.

LEED certified buildings experience energy savings in the range of 25% to 30% according to some authorities..

Of all the variables that determine the classification of a Green Building as determined by the LEED rating system, energy is one of the most significant components.

According to a California study, small increases in upfront costs of constructing a building can lead to savings of 20% of total construction costs -- more than ten times the initial investment over the life of the building.

Hard and soft cost savings range from reduced energy, water which lower operating costs and may mean better productivity and tenant health. There are literally hundreds of case studies which point to significant savings.

Here in Toronto, the Telus Tower Developers a LEED Gold Certified building claims that a company's overall energy savings "could equate to $15 to $20 per square foot of space compared to a traditional financial district office tower.

These savings if they bear out over time will give LEED certified developers significant advantage over traditional buildings and hopefully will give tenants greater savings as well.

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