Benefits to Going Green

Commercial real estate owners and managers need to embrace environmentally progressive practices in order to remain viable and meet the needs of the community. Building owners and managers can leverage cost savings and other green benefits that produce a undeniable return on investment—and position their buildings for the inevitable transition into a new era of efficiency.

The many benefits to Going Green follow. To learn more about what it means to Go Green and the options available, read more in our Green Building Series:

Part I - Part II - Part III - Part IV - Part V

Financial Benefits:

  • Expense Reductions: Green initiatives ultimately result in reductions to energy, water and maintenance costs.
  • Enhanced Brand Image: All else being equal, green businesses are looked upon more favorably.
  • Asset Appreciation: Green building concepts drive appreciation of building values and increase investor desirability.
  • Higher Occupancy Rates: Tenants are attracted to space that increases employee comfort level while enhancing public image.
  • More Productive Workforce: Green workspace results in happier employees and less absenteeism.
  • Lower Insurance Premiums: Buildings that document their green progress are eligible for insurance premium credits from AGPOM insurers.

Financial Benefits of Green Building

Source: Capital E Analysis
(per ft2)

Category  20-Yr Net Present Value
 Energy Savings  $5.80
 Emission Savings  $1.20
 Water Savings  $0.50
 Operations/Maintenance Savings  $8.50
Productivity/Health Benefits  $36.90 to $55.30
 Subtotal  $52.90 to $71.30
 Avg. Extra Cost of Building Green  (-$3.00 to -$5.00)
 Total 20-yr Net Benefit  $50 to $65
 

Community Benefits:

  • Reduction in Health Risks: The use of toxin-free building materials and green ventilation systems minimize potential health risks of cancer, asthma and other ailments.
  • Public Safety Improvements: Green buildings undergo a commissioning process that ensures buildings systems are operating optimally which reduces potential for fire and other hazards.
  • Improvements in Thermal and Acoustic Environment. Thanks to reduced VOCs (volatile organic compounds, emitted by materials used during and after the building process), aesthetic qualities are heightened, and strain on local infrastructure is minimized. In short, quality of life is improved for everyone involved.
  • Strengthening of Infrastructure. High-quality, green infrastructures promote ecological networks and links between habitats—enhancing quality of life and responding to climate change while fostering community well-being.

Environmental Benefits:

  • Improvements in Air and Water Quality.
  • Reduction in Solid Waste.
  • Reduction in Fossil Fuel Use and Dependence.
  • Conservation and Protection of Water and Forest Ecosystems.
  • Promotion of Alternative Energy Sources.
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