SOURCE: Marks Paneth LLP

Marks Paneth LLP

May 28, 2014 10:30 ET

What Do New York City Office Tenants Think About "Green" Certification of Office Buildings? "Meh," Is the Consensus

Environmental Sustainability Certification Is Not a Big Tenant Draw at This Point, According to Marks Paneth Survey of NY Commercial Real Estate Executives

NEW YORK, NY--(Marketwired - May 28, 2014) - Even as more New York office buildings are built and renovated to environmentally sustainable ("green") standards, tenants and potential tenants don't care all that much, according to a survey of top-level New York City real estate executives, including owners, brokers, agents, engineers and accountants and lawyers specializing in the space.

Most property executives (83%) said tenants regard green certification as either "not too important" (33%), only "somewhat important" (45%) or "not at all important" (5%), according to the spring 2014 Gotham Commercial Real Estate Monitor survey by accounting firm Marks Paneth. Only 15% of executives said they believe tenants see a building's environmental sustainability as "very important."

"It is safe to say that business concerns trump environmental concerns in the minds and calculations of those responsible for renting office space in New York City," said William H. Jennings, Partner-in-Charge of the Real Estate Group at Marks Paneth.

Nonetheless, real estate professionals think green certification will grow in importance to tenants. Most executives -- 60% -- said sustainability is a design element or amenity that office tenants will be looking for in the next three to five years. However, even more professionals (64%) said moveable walls and open office plans will be sought-after elements in the near future. Nearly half (48%) said office tenants will be looking for outdoor spaces, and 39% say they'll want bike racks.

In terms of where sustainable design will be found, just over half of property executives (51%) said it will occur in both new construction and the retrofitting of old office buildings.

To receive a copy of the Spring 2014 Marks Paneth Gotham Real Estate Monitor and/or to speak with a leader from Marks Paneth's Real Estate Group, please contact Katarina Wenk-Bodenmiller of Sommerfield Communications, Inc. at Katarina@sommerfield.com or 212-255-8386.

Methodology
The Gotham Commercial Real Estate Monitor from Marks Paneth represents the findings of a survey of nearly 100 commercial real estate professionals in the New York City market. Professionals participating in the research include owners and managers of commercial property, commercial real estate brokers and agents and attorneys and accountants specializing in the sector. The research employed self-administered questionnaires completed online by respondents. The list of professionals surveyed was compiled by Marks Paneth LLP, the research sponsor, and by Michaels Opinion Research. Interviews were completed during the period of March 3rd to May 7th, 2014.

About Marks Paneth LLP
Marks Paneth LLP is an accounting firm with over 500 people, of whom approximately 65 are partners and principals. The firm provides public and private businesses with a full range of auditing, accounting, tax, consulting, bankruptcy and restructuring services as well as litigation and corporate financial advisory services to domestic and international clients. The firm also specializes in providing tax advisory and consulting for high-net-worth individuals and their families, as well as a wide range of services for international, real estate, media, entertainment, nonprofit, professional and financial services, and energy clients. The firm has a strong track record supporting emerging growth companies, entrepreneurs, business owners and investors as they navigate the business life cycle.

The firm's subsidiary, Tailored Technologies, LLC, provides information technology consulting services. In addition, its membership in Morison International, a leading international association for independent business advisers, financial consulting and accounting firms, facilitates service delivery to clients throughout the United States and around the world. Marks Paneth LLP, whose origins date back to 1907, is the 33rd largest accounting firm in the nation and the 10th largest in the Mid-Atlantic region. In addition, readers of the New York Law Journal rank Marks Paneth as one of the area's top forensic accounting firms for the fourth year in a row.

Its headquarters are in Manhattan. Additional offices are in Westchester, Long Island and the Cayman Islands. For more information, please visit www.markspaneth.com.

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