Help your clients steer clear of sellers' 'greenwashing' tactics on commercial buildings

Dr. Diana Driscoll, president, Ridgeline Hospitality

As published in Scotsman Guide's Commercial Edition, December 2009.

As people become more environmentally conscious and make buying choices based on products' environmental benefits, more companies are trying to capitalize on the green movement. One method some companies are using when promoting their products or services is "greenwashing."

Greenwashing occurs when a company attempts to mislead consumers about its environmental practices or about its products' or services' environmental benefits. This can apply to commercial buildings, as well; although greenwashing generally refers to green products, building-owners or developers also can be guilty of this practice.

Therefore, commercial mortgage brokers must know how to protect themselves and their clients -- especially when clients are seeking to purchase a building certified by the U.S. Green Building Council's (USGBC's) Leadership in Energy and Environmental Design (LEED) program.

To be confident that a building meets LEED standards, brokers must know how and when it attained the certification, as well as whether it maintains its energy efficiency. With this understanding, brokers can help their clients be confident about the building's sales price.

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