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 | Jul 6, 2018
Delos and HDR will co-develop wellness design tools and collaborate on research
WELL Building Standard pioneer teams with architects to advance wellness innovations in the built environment.
Codes and Standards | Jul 5, 2018
BREEAM New Construction standard launched in U.S.
Follows successful launch of BREEAM In-Use standard.
Codes and Standards | Jun 29, 2018
Nearly half of nonresidential construction projects now delivered by design-build
‘Alternative’ method now mainstream for nonresidential, highway/street, and water/wastewater construction projects.
Codes and Standards | Jun 28, 2018
Modular construction may be key to relieving housing crunch
May be only way to meet needs as ranks of construction workers decline.
Codes and Standards | Jun 27, 2018
Thirty nine San Francisco high rises at risk of collapse in major earthquake
Vulnerable buildings have welded columns and beams.
Codes and Standards | Jun 26, 2018
Boston enacts new climate resiliency rules for buildings
New policy is likely a first in the nation.
Codes and Standards | Jun 25, 2018
Integrated Project Delivery guide offered by Pankow Foundation
An Action Guide for Leaders offers answers to critical IPD questions.
Codes and Standards | Jun 21, 2018
New app said to automate code compliance
Startup offers plug-in that scans 3D models.
Codes and Standards | Jun 20, 2018
Home values and local tax revenues at risk from high tide flooding, scientists group says
Analysis of property data identifies communities prone to frequent flooding.
Codes and Standards | Jun 19, 2018
Structural engineered wood products exempt from new EPA formaldehyde ruling
Exempt products include structural plywood, oriented strand board (OSB).