Many developers anticipating anchor financial sector tenants may lose them to downsizing or sublease space (eg, French bank Natixis, whichtook former JPMorgan space 277 Parkafter the Bear Stearns meltdown, despite a rumored move to LEED Gold hopeful Eleven Times Square, saving approximately $30 PSF).

Every new commercial office project in Manhattan will likely apply for LEED certification thanks to tenant demand andFortune 500 mandates. But the latter may cause interestingliability in the future if a company signs a lease for a potential Gold building that's certified Silver after delivery. It's a hidden area of risk, and questions remain about who is to blame.

There's been an increase in reported claims on sustainable projects, as expectations and definitions do not match up.Some think LEED or Green Globes are standards, while others may be expecting specific green materials or building systems. The best way to align those expectations is a clear contractwith every provision reviewed and vetted.

Mayor Mike's PLANYC 2030task force may consider pushing green legislation on private projects, just like it did on public ones. Stephen disagrees with mandating green and suggestsincentives like special zoning variances. Otherwise, there's potential for industry-led opposition due to increased construction costs.