If you are evaluating sustainable initiatives for your buildings purely based upon a simple payback, you may be missing the boat. Energy Star buildings command an average rent premium of about 20% over their peers. Occupancy rates of LEED Buildings are increasing as those of their peers are decreasing. And those figures don’t come from USGBC, AIA or any other entity that has a strong interest in sustainable design and construction. The figures come from CoStar, a service that in the words of a TV detective who was popular when I was a child, reports “The facts, ma’am, nothing but the facts.”
Even a simple calculation of ROI for many sustainable initiatives proves that “going green” is good for business. The incremental cost of sustainable design and construction is decreasing and energy costs are increasing.
Federal, state and local governments are encouraging (to put it mildly) sustainable design and construction. Right now everyone seems to be focusing on the carrots, rather than the very big sticks that they are also holding.
Real Estate, like every business, is driven by supply and demand. If you don’t pay attention to the demand for sustainable building, you’re likely to find yourself with a very big supply of empty space.
Even a simple calculation of ROI for many sustainable initiatives proves that “going green” is good for business. The incremental cost of sustainable design and construction is decreasing and energy costs are increasing.
Federal, state and local governments are encouraging (to put it mildly) sustainable design and construction. Right now everyone seems to be focusing on the carrots, rather than the very big sticks that they are also holding.
Real Estate, like every business, is driven by supply and demand. If you don’t pay attention to the demand for sustainable building, you’re likely to find yourself with a very big supply of empty space.
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