flexiblefullpage
billboard
interstitial1
catfish1
Currently Reading

Certified Green Buildings may have an advantage in capital markets

Codes and Standards

Certified Green Buildings may have an advantage in capital markets

Research supports financial case for certification.


By Peter Fabris, Contributing Editor | September 7, 2018

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 | Sep 22, 2020

Air cleaners, chemical and UV treatments among tools to safeguard indoor air amid pandemic

Strategies augment social distancing, increased air flow to combat COVID-19 spread.

Codes and Standards | Sep 21, 2020

No ease of lumber price spikes in sight

Wildfires strike Northwest timber industry in wake of Covid-19 shutdowns.

Codes and Standards | Sep 17, 2020

Spate of energy code appeals could hamper efficiency progress

Construction and fossil fuel interests oppose portions of latest model energy code.

Codes and Standards | Sep 16, 2020

Heat pumps are the future for hot water

Sustainability policies will drive trend.

Codes and Standards | Sep 15, 2020

Taller timber buildings approved in National Fire Protection Association code

Ensures compatibility with the International Building Code.

Codes and Standards | Sep 14, 2020

Relocation of neighborhoods, the next step in U.S. flood strategy, is underway

Repeated rebuilding after successive floods now seen as bad policy.

Codes and Standards | Sep 10, 2020

Fannie Mae programs provide incentives for multifamily solar

Affordable housing projects can find PV installations to be cost-effective.

Codes and Standards | Sep 9, 2020

Corporate pledges accelerate net-zero building movement

World Green Building Council drives goal of net-zero carbon emissions by 2050.

Codes and Standards | Sep 8, 2020

Study will examine elevator airflow amid COVID-19 pandemic

Researchers to investigate risk of airborne transmission.

Codes and Standards | Sep 4, 2020

Updated selection, application guide for plastic glazed skylights, sloped glazing released

Part of suite of skylight documents by Fenestration and Glazing Industry Alliance.

boombox1
boombox2
native1

More In Category




halfpage1

Most Popular Content

  1. 2021 Giants 400 Report
  2. Top 150 Architecture Firms for 2019
  3. 13 projects that represent the future of affordable housing
  4. Sagrada Familia completion date pushed back due to coronavirus
  5. Top 160 Architecture Firms 2021