60 second summary:
This study,which looked at buildings in North America and the UK,shows that a clear link is beginning to emerge between the market value of a building and its green features.
Not only are green buildings good for the environment,provide healthier places to live and more productive places to work,they can command higher rents and prices,attract tenants more quickly,reduce tenant turnover and cost less to operate and maintain.
What is Green Value?
Green Value is the net additional value obtainable by a green building in the market.
The study concludes that green buildings can achieve greater value than their conventional equivalents. But further,it found that the green building industry and others may be failing to get the message across that the main beneficiaries are occupants.
For example because they are easy to measure,a lot of attention has been focused on energy savings.However,these are usually less than 1% of business operating costs. By comparison,total annual real estate expenses are usually around 10% of such costs whilst staff costs can be as high as 85%.This means that the biggest return on investment should arise when green buildings improve business productivity. Instances were found of green features improving productivity,but neither owners,developers,appraisers,nor the green building sector,fully value or communicate this advantage.
Both the real estate and green sectors would benefit from reviewing their focus and and working more closely together.While the benefits to asset value are compelling,they are minor compared with the benefit to business.This benefit needs to be properly valued and communicated.Then all can benefit from building green.
Read the complete report HERE