Granted, Portland has made a big push for environmentally sustainable design and construction, but it does make anyone in the commercial real estate industry pause as to the future valuation of commercial real estate across the country and how we should advise our clients regarding "green" standards.

Today in Minnesota, any projects that go through a bond must meet minimum state sustainability requirements, known as B3 or "Buildings, Benchmarks and Beyond." These requirements are somewhat different than the LEED certification process, but some clients are not always aware that failure to meet B3 in a bonding situation could result in loss of state funding.

At the same time, a B3 building or privately funded building may also be eligible to apply for LEED. There are different levels of LEED. And there is the option to design and build a LEED eligible building without pursuing certification. It may or may not be worth the additional investment depending on future valuation, tenant preferences and environmental and energy legislation. Keep in mind that these decisions are made during the design phase, but will impact the building and its ownership for years.

Ultimately, balancing the green vision with reality has become a competitive differentiator of experienced contractors and construction managers. Their knowledge of the players and evolving standards as well as diligent project and cost management are a critical component of pursuing, meeting and maintaining sustainability.

For example, site cleanliness is an increasingly important component of any construction project. A forward thinking construction manager must review the choice of subs, materials vendors and project management processes to ensure that things like waste management, air quality and general dirt and grime won't result in lost "green" points.

Project documentation has increased significantly not only to meet B3 or LEED standards, but also to work with commissioning agencies on the inspection and approval of mechanical systems. For a recent university civil engineering building project, the documentation requirements were intense. Coordinating and completing documentation is no small feat for a construction firm of any size.

Another major concern is the difference in standards by market or state. While Minnesota has B3, other states have their own minimum standards. Competitive construction firms are looking to alternative markets and must prove their ability and knowledge for addressing the sustainability standards in those markets.   

Even with all of this knowledge and experience, competitive firms also understand the importance of bottom line cost to clients. Low bid is still often a tipping point, particularly for public projects such as a county sheriff's office where officials and politicians want to meet needs while demonstrating good stewardship of tax dollars. Cost factors into just how environmentally friendly a client is willing to go for the potential returns later.  It's just one more reality that challenges the idealism of eco-friendly construction.

Is Portland a looking glass into Minnesota's commercial real estate future? Hard to say, but following the money - the bottom line benefit of change - is already a good indication of how the industry will adapt practices and products.

*Project Manager Meghan Huber, LEED® AP contributed to this article.