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 | Jun 21, 2021
Vancouver, B.C., may delay new zero emissions building standards
Building permit delays may postpone new standards by a year.
Codes and Standards | Jun 17, 2021
Buffalo’s parking reform having noticeable impact on development
Elimination of mandatory parking allotments encourages new projects.
Codes and Standards | Jun 16, 2021
Inconsistent building codes make some states more vulnerable to hurricanes
Florida takes top spot for strongest building code in latest IBHS survey.
Codes and Standards | Jun 15, 2021
Growing housing supply gap will worsen affordability crisis
Supply projected to fall 4.5 million units short in 2022.
Codes and Standards | Jun 15, 2021
Florida will allow virtual inspections, building code enforcement, permit issuance
New law will go into effect on July 1, 2021.
Codes and Standards | Jun 10, 2021
New York City cracks down on construction site safety
Buildings Dept. issues new safety legislation for City Council consideration.
Codes and Standards | Jun 9, 2021
ASHRAE updates health care facility ventilation standard
Includes improved guidance on thermal comfort, revisions to air filtration requirements.
Codes and Standards | Jun 8, 2021
American Wood Council releases new fire design specification
For design of wood members, assemblies, and connections to meet code requirements.
Codes and Standards | Jun 7, 2021
Guide provides strategies to overcome barriers to sustainable affordable housing
International Living Future Institute document helps with social, regulatory, and financial hurdles.
Codes and Standards | Jun 3, 2021
Conversion of large office buildings to residential will require revamped regulations
Post-1960 offices present ventilation, daylighting, and other challenges.