Business case for green buildings evolving as markets mature

Properties with enhanced green credentials will have increased marketability, as property investors and businesses become increasingly more knowledgeable about the environmental and social impacts of the built environment, according to a new report.

Studies suggest that greener buildings attract potential tenants and command higher rents and sale prices in the market

Studies suggest that greener buildings attract potential tenants and command higher rents and sale prices in the market

The report, Creating a Better World: The Case For Green Buildings, states that the business case will continue to evolve as markets mature over the coming years.

Studies already suggest that greener buildings attract potential tenants and command higher rents and sale prices in the market, while risk factors can significantly affect the realistic rental value of commercial premises.

According to McGraw-Hill Construction's SmartMarket Report, 51% of business owners are planning more than 60% of their work to be green by 2015.

This increasing figure is a result of greener buildings helping to mitigate risk and improve the return on investment for developers.

Mandatory disclosure, building codes and laws banning inefficient buildings have meant that regulatory risks have become increasingly apparent in cities across the globe. This means there will continue to be an increase in demand for sustainable workplaces.

"Certainly global industry professionals have high expectations of the operating cost benefits of occupying green property," the report states.

This is backed up by figures in the report showing that 19% of industry professionals believe their operating costs will fall by 15% or more within the following 12 months, with a further 39% expecting savings of 15% or more over the next five years.

The report adds: "With green buildings in general fast becoming more commonplace around the world the challenge is no longer about having the expertise to deliver and build green buildings, but rather having the know-how to integrate them cost-effectively.

"Transparency and collaboration between client and development teams is essential to maintain a synergy between investment in design and the essential benefits of a green building once it is complete," it concludes.

Leigh Stringer


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Energy efficiency & low-carbon
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