One of the hottest real estate stories of the week is the news that Skanska is bringing its commercial development division to Seattle, signifying it sees growth in the regional market.
My colleague at the DJC, Benjamin Minnick, reported the news here. In the story, he reports thatLisa Picard has been hired as executive vice president to lead the local development division. “The fundamentals in Seattle are great,” she said.
The move is especially notable because Skanska will self-finance all its projects and says it won’t necessarily develop projects owners are currently doing, such as apartments in today’s times. Instead, the story says Skanska will look at the long term and what is a good buy now.
That’s interesting obviously, because of the freedom Skanska has to build what it wants. But it also speaks to the potential for sustainable buildings.
Most developer’s green goals are constrained by the cost of super green technologies. I’ve been told that green projects up to around LEED gold can be done at cost if you begin early. But if you want to go for the super green stuff – net zero energy, Living Building certification, fancy new technologies – there’s still a hefty premium, even if there’s a huge benefit.
According to the story, Skanska has already said all its projects built locally will meet LEED gold or higher standards, and will be located in urban core areas with strong employment growth. To read the company’s sustainability policy, click here (beware- it’s pretty overwhelming).
By self-financing its own projects, Skanska, already a leading green general contractor, has the opportunity to do some really incredible things. Additionally, if they plan to hold onto projects for a long time, rather than flip them, they have more of an incentive to invest in green technologies that only pay off over the long term.
I’m curious to see what kind of projects they pursue, what kind of sustainable goals they target, and what kind of green technologies they might choose to pursue that others wouldn’t be able to. Of course, they could simply go the LEED gold route. Or they could build something really innovative.
If projects were self-financed and held onto for a longer amount of time, do you think we’d end up with a larger quantity of super green buildings? Or do you think teams would stick to the status quo?