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 | Oct 11, 2021
New program to promote mass timber construction launched in Boston
City’s planning and development agency to award grants for projects in early-stage planning.
Codes and Standards | Oct 6, 2021
Intl. Code Council publishes EV and building codes resource
Assists communities in setting policies for electric vehicle charging requirements.
Codes and Standards | Oct 5, 2021
Feds award $1 billion to renovate health centers
Funds will modernize existing infrastructure and cover other COVID-19-related capital needs.
Codes and Standards | Oct 4, 2021
Boston City Council approves mandate for major emissions cuts for large buildings
Applies to buildings 20,000 sf or larger—about 4% of city’s buildings.
Codes and Standards | Oct 4, 2021
HPD Collaborative and Green Seal to align standards
Will result in expanded options for manufacturers to enhance sustainability reporting and certifications.
Codes and Standards | Sep 30, 2021
U.S. has a deficit of 5 million homes
Builders unable to keep pace with demand.
Codes and Standards | Sep 29, 2021
Mass Timber group study will compare structural round timber to glulam products and steel
Will compare costs, capabilities, and carbon impacts of structural materials.
Codes and Standards | Sep 28, 2021
Massachusetts creates Commission on Clean Heat
First-of-its kind body to set targets for buildings to reduce emissions from heating fuels.
Codes and Standards | Sep 27, 2021
Commercial real estate industry faces SEC climate disclosure regulations
Risks associated with climate change would have to be revealed.
Codes and Standards | Sep 22, 2021
Group proposes Carbon Use Intensity metric for new buildings
Plan would track embedded carbon on projects.