Green business cluster grows in Commonwealth Building

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It used to be that the Commonwealth Building in downtown Portland was marketed to potential tenants for its architectural significance.

The 14-story building, completed in 1948, was one of the first glass box towers, the first to be fully air conditioned and has a place on the U.S. National Register of Historic Places.

But these days, all that is a footnote to the main marketing message.

“It’s all about how sustainable the building is and how the owner gets it,” said leasing agent Joe Vaughan of Pacific Real Estate Partners.

This week, Unico Properties, which co-owns and manages the building for its partner CIGNA Realty Investors, is announcing two new green-minded tenants in the building: the Northwest Energy Efficiency Alliance and Green Building Services — two companies that promote sustainable operations in buildings. Between them, they will lease 30,000 square feet.

Unico and CIGNA have invested $9 million to renovate the building, which is slated for an Energy Star label and Leadership in Energy and Environmental Design (LEED) for Existing Buildings certification in 2010.

“We didn’t say, ‘Let’s position this as a green building,’” said Brian Pearce, Unico’s Portland general manager. “But we do want to be a leader in sustainability.”

Unico uses so-called green leases to spell out a commitment to sustainable practices on the part of the tenants, tenant improvement contractors and the landlord. Unico also taps tenant representatives to form Green Teams at the building.

NEEA and Green Building Services join other eco-minded tenants such as Element Power, a renewable energy company, and National Fish and Wildlife. The building is 75 percent leased.

In response to the needs of the tenants, Unico is adding additional capacity for bike parking — the building borders Stark Street, one of the designated bike thoroughfares through downtown — more showers and day-use lockers.

Both of the new Commonwealth tenants, expected to move in this September, were in the market for new space to accommodate their growth.

Doug Deurwaader, a Cushman & Wakefield associate director who worked with Green Building Services, says he’s seeing a lot of that.

“The sustainability industry is one of the few sectors seeking expansion space,” he said.

Deurwaader said sustainable companies are looking for about 300,000 square feet right now in the Portland market.

“These are sustainable tenants not only looking for space,” he said, “but looking for space that aligns with and supports their sustainable mission and corporate culture.”

Expect to see more green leases.