The research is in… it’s final — there are NO intelligent arguments left — savvy owners, tenants and investors have moved from anecdotal evidence to well-documented case studies proving the positive value sustainable business practices and technologies in real estate bring to not only humans and the environment, but also for delivering long-term VALUE and competitiveness. In fact:
1) Green office buildings in the U.S. performed better during the economic downturn of 2008 and 2009 than their comparable non-green high quality property investments — commanding rental rates that were substantially higher than those of otherwise identical office buildings. The “Sustainability and the Dynamics of Green Building: New Evidence on the Financial Performance of Green Office Buildings in the USA,” study by RICS also proves that sustainable real estate investors can operate profitably even in times of financial constraints and that they may be better placed in future-proofing their assets than their less forward-thinking peers.
2) Because of changes in the marketplace energy costs alone are not enough to drive value – value now for most corporate RE executives, owners and investors is the value GREEN and sustainability bring to overall workplace effectiveness with strategies that promote employee health, well-being and productivity.
3) Look for leaders in the market — like RICS — to work towards continued improvement in quality, localized valuation-related and property-specific information and to have that data appear on listings services in both residential and commercial real estate. Marking buildings as GREEN and or sustainable or NOT will be commonplace sooner rather than later in most global marketplaces.
There is no denying any longer – no intelligent argument can be made – that GREEN and sustainable buildings provide value to all users of CRE — owners, tenants and investors alike. GREEN and sustainable practices offer a significant return on investment but they also generate health and productivity benefits, recruiting and retention advantages, and reduce risks.
REMEMBER – Do NOT wait any longer — Contrary to what you may read, hear or see, your money can be making money in this real estate market.