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
| May 28, 2014
Resiliency measures for hurricanes can help with tornadoes
Architect Butch Grimes, who examined the wreckage after a half-mile tornado struck Tuscaloosa, Ala., believes toughening building codes can reduce damage from twisters.
| May 28, 2014
Rooftop wind turbines becoming green status symbol in New York City
New York City developers are using rooftop wind turbines in an effort to attract buyers by highlighting a building’s green credentials.
| May 28, 2014
Peer review process under way for the WELL Building Standard
The standard is the first protocol of its kind that focuses on improving human wellness within the built environment by identifying specific conditions that, when holistically integrated into building interiors, enhance the health and wellbeing of the occupants.
| May 22, 2014
ASHRAE releases best practice guide for liquid cooling systems in data centers
The publication provides guidelines on interface requirements between chilled-water systems and technology cooling systems and on the requirements of liquid-cooled systems that attach to a datacom electronics rack.
| May 22, 2014
Colorado approves $4.2B data center said to be invulnerable to power outages
The Niobrara Data Center Energy Park project in Colorado will be the first data center to be fully self-contained with its own self-generated energy production facility.
| May 22, 2014
Energy Department analysis shows efficiency gains from ASHRAE 2013 energy standard
Preliminary DOE analysis shows that the ASHRAE/IES’s 2013 energy efficiency standard contains energy savings over the 2010 standard of 8.5% source energy and 7.6% site energy.
| May 22, 2014
Federal disaster policy should focus on mitigation, insurance group says
Federal disaster policy should shift its focus toward mitigation in order to reduce future disaster costs, the National Association of Mutual Insurance Companies says.
| May 22, 2014
Study quantifies cost premiums for net zero buildings
The 73-page report breaks down the incremental cost premiums for transforming three LEED Platinum-designed buildings into net-zero energy, net-zero water, and living Buildings.
| May 22, 2014
Senate kills bipartisan energy efficiency bill over Keystone pipeline amendment
The legislation focused on energy efficiency standards such as water heaters with smart meters and cheaper heating and cooling systems for office buildings.
| May 19, 2014
Construction skilled-worker shortage causing rise in claims
The improved economy has boosted construction starts, but a shortage of experienced trade workers has led to more on-the-job injuries and construction defects.