Research indicates that green certification lowers the cost of capital for real estate investors, according to a recent column at GlobeSt.
The reasoning is that certified buildings have a more attractive risk profile and may be more resilient during tough economic times, according to Dr. Nils Kok, associate professor at Maastricht University, the article says. Some studies have shown that commercial mortgages for green-certified buildings have significantly lower default rates.
Indeed, evidence is growing bolstering the notion that sustainability correlates with stronger financial performance in the commercial real estate sector. One recent report found that buildings certified by ENERGY STAR and/or LEED sell for about 10.1% more than non-green certified buildings. Green buildings were found to lease for rates that are 2.2% higher than average, and effective cash flows are 4.6% higher.
Additional data indicates that there is a rapidly growing market for green bonds that invest funds for new sustainable buildings and renovations of existing structures.
Related Stories
Codes and Standards | Feb 5, 2019
Milwaukee board approves rezoning for Western Hemisphere’s tallest mass timber building
Mixed-use tower would rise 21 stories high.
Codes and Standards | Feb 1, 2019
Mass. governor proposes real estate transfer fee hike for climate resiliency projects
Opposed by real estate and trade groups, plan could generate $1 billion in next decade.
Codes and Standards | Jan 31, 2019
New York City will reform construction bid process
Streamlined process intended to improve efficiency, reduce hassle for bidders.
Codes and Standards | Jan 30, 2019
New AGC program aims to diversify construction workforce
More diversity needed to keep pace with demand for workers.
Codes and Standards | Jan 29, 2019
Registration now open for LEED v4.1 for New Construction and Interior Spaces
Emphasizes human health and integrative building design.
Codes and Standards | Jan 25, 2019
AEC professionals should push for net zero projects
Educate and lead clients to more sustainable choices, says LEED fellow.
Codes and Standards | Jan 24, 2019
OSHA unaffected by federal government shutdown
Agency fully funded for first nine months of 2019.
Codes and Standards | Jan 23, 2019
Hackers can easily take control of construction cranes
Potential for serious harm is real, say researchers.
Codes and Standards | Jan 22, 2019
Initiative will introduce open-source software for commercial and public building retrofits
Energy analysis tool will identify energy efficiency opportunities.
Codes and Standards | Jan 18, 2019
Texas city sues developer over changes in $1 billion mixed-use project
Revised plan eliminated 8-acre lagoon, trolley, show fountain, and reduced retail space.