Green Premium
ENERGY STAR & LEED certified green buildings, sell and lease at a premium and have higher occupancy rates.
In a recent study by the University of San Diego, McGraw Hill Construction & CB Richard Ellis 156 buildings totaling 52.5 million square feet were surveyed. Respondents reported these results:
- 4% improvement in ROI
- 5% increase in building value
- 8% reduction in operating costs
- Average rental rates are highest for LEED certified buildings
- Average occupancy for green buildings is higher than the market
Read the report “Do Green Buildings Make Dollars & Sense?” [7.6 MB PDF]
Take a look at these green building metrics from a study by CoStar. CoStar handles more than 350 million building square feet. In a detailed comparison they pitted ENERGY STAR and LEED rated buildings against non-green peers. Here is what they found:
| Building Type | Occupancy Rate | Rental Rate per Ft2 | Sales Price per Ft2 |
|---|---|---|---|
| ENERGY STAR Certified | 91.5% | $30.55 | $288 |
| Non-ENERGY STAR Peers | 87.9% | $28.15 | $227 |
| LEED Certified | 92.0% | $42.38 | $438 |
| Non-LEED Peers | 87.9% | $31.05 | $257 |
Read the full CoStar report [4.2 MB PDF]
Green buildings mean more employee productivity. Why is this important? Consider this; employee salaries often outweigh energy costs 100:1. Energy efficient buildings create a better work environment that increases productivity through:
- Better indoor air quality
- Fewer occupant sick days
- Greater comfort
- Improved daylight
A small productivity increase of 1% per year per person can have a dramatic effect on the bottom line. A person making $75,000 a year who occupies 200 sf costs $375 per sf/yr. A 1% increase in productivity means additional revenue of $3.75 per sf/year.
Green buildings also:
- Create higher Value
- Differentiate your building and your business
- Lower costs
- Mitigate risks
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