Optimizing energy efficiency in buildings obviously saves money on utility bills, but there are several other ways that green initiatives can boost ROI.
Government programs
Several government programs (the Low-Income Housing Tax Credit program, for example) reward projects that have sustainability features and document energy reduction. Many states and local governments offer tax incentives for green building certification. Nevada, for example, offers property tax incentives for new and existing multifamily or commercial buildings that achieve a certification from LEED or Green Globes.
Access to better financing
Improved energy efficiency can pave the way to better financing. For instance, Fannie Mae and Freddie Mac have begun offering green lending programs (known as Green Rewards and Multifamily Green Advantage) that can translate into savings of up to 39 basis points for borrowers who commit to implementing energy efficiency or water efficiency measures.
Lease premiums
Many companies are concerned with corporate environmental and social responsibility, and consider energy and water efficiency when choosing to lease or purchase property. According to surveys, some commercial renters say they are willing to pay a premium for green office space.
Related Stories
Codes and Standards | May 24, 2016
Ontario planning to spend $7 billion on wide-ranging climate change plan
Includes financial incentives to retrofit buildings.
Codes and Standards | May 23, 2016
Facility managers say Internet of Things, analytics will impact maintenance soon
More reliable data needed for optimal results from the technology.
Codes and Standards | May 20, 2016
Industry leaders call for wider use of bamboo as a building material
Benefits include seismic resiliency and sustainability.
Codes and Standards | May 19, 2016
Asphalt roofing group publishes updated shingle installation guide
Technical manual provides best practices for roofing professionals.
Codes and Standards | May 16, 2016
EPA proposes new stormwater discharge regulations for construction sites
Would apply to sites of one or more acres.
Roofing | May 16, 2016
New guide focused on increasing energy and structural performance with raised-heel trusses
Higher trusses simplify attic ventilation, leave more space for insulation.
Codes and Standards | May 11, 2016
Current California seismic codes provide safety, resiliency, but needed upgrades present challenge
Los Angeles requires seismic retrofits, but other cities do not.
Codes and Standards | May 10, 2016
Apple spars with Cupertino, Calif., mayor over strained city infrastructure
Apple’s new ‘spaceship’ campus project prompts questions about whether the company should pay more to offset traffic woes.
Codes and Standards | May 9, 2016
Safety Stand-Down yields proposals to boost construction safety
One example: Gilbane encourages safety harnesses for all working above 6 feet.
Codes and Standards | May 9, 2016
EcoDistricts unveils sustainable neighborhood framework
Focus is on equity, resilience, and climate protection.