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 | Oct 2, 2018
Political will, tougher standards needed to reach carbon neutral goal
Stretch codes, more stringent credentials for designers, contractors, and inspectors may be needed.
Codes and Standards | Sep 27, 2018
Natural light is the most prized office perk
Employees crave sunshine and views of the outdoors more than cafeterias, fitness centers, and childcare.
Codes and Standards | Sep 26, 2018
Industry consensus needed for multifamily energy efficiency retrofit approach
Choice of insulating materials can impact indoor air quality, resident health.
Codes and Standards | Sep 25, 2018
New market forces disrupting global real estate development industry
Executives concerned about trade policy, labor shortages, approval processes.
Codes and Standards | Sep 21, 2018
More than 130 organizations petition OSHA to create heat protection standard for workers
Includes mandatory rest breaks, heat-exposure monitoring, record-keeping injury requirement.
Codes and Standards | Sep 20, 2018
North Carolina law banning use of recent climate science could worsen Hurricane Florence impact
Policies may have undermined ability to make coastal regions more resilient.
Codes and Standards | Sep 19, 2018
AIA endorses building owner participation in cap-and-trade programs
Would spur more energy conservation in buildings and cut carbon emissions.
Codes and Standards | Sep 18, 2018
ConsensusDocs Coalition publishes new Lean Addendum
Industry-first document to facilitate lean tools without need to sign multi-party IPD agreement.
Codes and Standards | Sep 14, 2018
IAPMO seeks comments on proposals for 2021 plumbing and mechanical codes
Deadline is Jan. 3, 2019.
Codes and Standards | Sep 13, 2018
As ICC prepares to vote on codes for tall wood buildings, opposition is still strong
Influential body will vote in October on new provisions to allow 18-story wood-framed structures.