Go Green: Are Eco Friendly Buildings More Lucrative?
A new study shows sustainable buildings will be more lucrative than traditionally managed properties, reports the Real Deal.
The study, which was run by CB Richard Ellis, McGraw-Hill Construction, and the University of San Diego, found that owners of green buildings nationwide expect a 4% higher return on their property investments and a 5% larger appreciation in their buildings' value than those who handle traditional properties.
Buildings with any level of the Leadership in Energy and Environmental Design certification or the Energy Protection Agency's Energy Star label were considered green properties, according to CB Richard Ellis. Most of the buildings analyzed also embraced other sustainable practices like recycling, adopting water conservation measures, and using environmentally friendly cleaning methods.
About 79% of the owners surveyed expect their property's green label to lure in enough tenants to bump up their building's occupancy by 5%. The managers also anticipate a 1% increase in rental income.
According to the Real Deal, 10% of green building residents reported improved productivity and 83% of the tenants felt their environment was healthier.