NewsMichael L. Webb shared his insight with Commercial Property Executive in their recent article “Skanska Inks Lease at Sustainable Houston Tower” discussing the “flight-to-quality” trend in the current commercial office market.
From the article:
Michael Webb, counsel at Farrell Fritz P.C., said: “The success of 1550 on the Green may be illustrative of a larger national trend dubbed the ‘flight-to-quality.’”
“Since early 2022, the tristate region’s commercial office market has been driven by companies seeking, relocating to, and concentrating within metropolitan areas. These areas offer so-called Class A buildings with ‘green’ or LEED certifications, access to prime locations and transit, coupled with high-end, on-site amenities.”
He added that in a post-pandemic setting, companies seek spaces and environments that align with and reflect their ESG goals, support overall health and well-being initiatives. This new work environment encourages and incentivizes employees to engage in in-person collaboration.
Webb said the demand for green office space may be impacted by recent laws and regulations requiring building owners and operators to reduce emissions.
For example, Local Law 97 in New York targets the city’s largest buildings and requires owners to reduce their building emissions by specific dates or face monetary fines and penalties. In New York City, the expectation is that non-compliant buildings will become less favorable and desirable assets, Webb said.
Read the full article here: