Renovation nets gold certification for green building downtown
A downtown Las Vegas office building has been renovated to achieve gold certification from the U.S. Green Building Council’s Leadership in Energy and Environmental Design program, the new owners said Wednesday at a ceremonial event attended by former President Bill Clinton.
The extensive renovation of the 11-story, 162,000-square-foot property at 302 E. Carson Ave. marks the first project from a $100 million green building fund, a joint venture between California-based Shangri-La Industries and Thompson National Properties.
The office building, built in the 1960s, was nearly obsolete and a waste of energy, said Andy Meyers, president of Shangri-La Construction. The retrofit cost about $80 a square foot, including asbestos abatement, he said.
The LEED design and efficiency upgrades are projected to decrease energy consumption by 30 percent and water consumption by 40 percent, he said.
Upgrading the roofing and heating, ventilation and air conditioning system will save more than $50,000 a year in electricity costs. Windows were replaced to reduce heat transfer, which lowers electric bills and makes it more comfortable for workers. Installation of a "cool" roof will reduce the building’s urban heat-island effect and interior temperature.
Meyers said the cost of green building will come down as it becomes more mainstream. Building codes are already evolving and catching up with LEED certification requirements, he said.
"I’d say green development is not unlike paying $30,000 for the first plasma-screen TV," Meyers said. "Now they’re $3,000. Prices are definitely coming down."
Darryll Goodman, senior vice president of asset management for Thompson, said there are tax incentives for green building, including property tax abatement, though he did not have an actual dollar amount for the Las Vegas property.
Meyers said it’s his understanding that it would be a 25 percent abatement for seven years for gold certification.
"It’s part of the overall business model that made achieving LEED certification all the more financially appetizing," Meyers said. "But it was something we were going do one way or the other. It was not the deciding factor."
Tony Thompson, chairman and chief executive officer of Thompson National Properties, said the downtown office building was about 40 percent occupied when renovation work began a year ago.
While office vacancy in Las Vegas has increased to about 24 percent and average asking rents have dropped to $2.23 a square foot, Thompson said he’s getting $2.50 to $3 a square foot in rent.
"Downtown property values and occupancy rates are holding better," he said. "Downtown is a whole different animal than the suburbs. This building competes against the Bank of America tower."
Thompson said several law firms that were on month-to-month leases left during construction but have expressed interest in coming back. The Constable’s office moved into the building in January.
Contact reporter Hubble Smith at hsmith@reviewjournal.com or 702-383-0491.