What’s the premium for a green building?

A systemic study on the financial performance of green buildings reveals that green office buildings have higher market value than uncertified buildings.

04/03/2009


Source: RCIS
The Royal Institution of Chartered Surveyors (RCIS) announced the first study on the financial performance of green office buildings in the U.S. The survey was conducted by Piet Eichholtz and Nils Kok from the University of Maastricht, Netherlands,

“Doing well by doing good?” An analysis of the financial performance of green office buildings in the USA is a 48-page report that claims to offer systematic evidence on the economic benefits of green buildings.

The LEED or Energy Star labels also effect how potential value of the building. The study indicates that tenants and investors will be willing to pay more for an energy-efficient building, but not for a building advertised as sustainable.

The study discovered that buildings certified green can significantly impact market rents and values of commercial space. The study revealed that building with the green certification rent for roughly 3% more per sq ft with the difference in effective rent estimated at about 6% per sq ft. The increment to the selling price may reach as high as 16%.

Source: Environmental Leader
According to the study, average effective rent for the 7,488 control buildings in the sample of rental office buildings is $23.51 per sq ft. For the average size of these buildings, the estimated annual rent increment for a green building is approximately $329,000. At prevailing capitalization rates of 6%, the incremental value of a green building is estimated to be about $5.5 million more than the value of a comparable unrated building nearby.





No comments
The Top Plant program honors outstanding manufacturing facilities in North America. View the 2015 Top Plant.
The Product of the Year program recognizes products newly released in the manufacturing industries.
The Engineering Leaders Under 40 program identifies and gives recognition to young engineers who...
2016 Product of the Year; Diagnose bearing failures; Asset performance management; Testing dust collector performance measures
Safety for 18 years, warehouse maintenance tips, Ethernet and the IIoT, GAMS 2016 recap
2016 Engineering Leaders Under 40; Future vision: Where is manufacturing headed?; Electrical distribution, redefined
SCADA at the junction, Managing risk through maintenance, Moving at the speed of data
Safety at every angle, Big Data's impact on operations, bridging the skills gap
The digital oilfield: Utilizing Big Data can yield big savings; Virtualization a real solution; Tracking SIS performance
Applying network redundancy; Overcoming loop tuning challenges; PID control and networks
Driving motor efficiency; Preventing arc flash in mission critical facilities; Integrating alternative power and existing electrical systems
Package boilers; Natural gas infrared heating; Thermal treasure; Standby generation; Natural gas supports green efforts

Annual Salary Survey

Before the calendar turned, 2016 already had the makings of a pivotal year for manufacturing, and for the world.

There were the big events for the year, including the United States as Partner Country at Hannover Messe in April and the 2016 International Manufacturing Technology Show in Chicago in September. There's also the matter of the U.S. presidential elections in November, which promise to shape policy in manufacturing for years to come.

But the year started with global economic turmoil, as a slowdown in Chinese manufacturing triggered a worldwide stock hiccup that sent values plummeting. The continued plunge in world oil prices has resulted in a slowdown in exploration and, by extension, the manufacture of exploration equipment.

Read more: 2015 Salary Survey

Maintenance and reliability tips and best practices from the maintenance and reliability coaches at Allied Reliability Group.
The One Voice for Manufacturing blog reports on federal public policy issues impacting the manufacturing sector. One Voice is a joint effort by the National Tooling and Machining...
The Society for Maintenance and Reliability Professionals an organization devoted...
Join this ongoing discussion of machine guarding topics, including solutions assessments, regulatory compliance, gap analysis...
IMS Research, recently acquired by IHS Inc., is a leading independent supplier of market research and consultancy to the global electronics industry.
Maintenance is not optional in manufacturing. It’s a profit center, driving productivity and uptime while reducing overall repair costs.
The Lachance on CMMS blog is about current maintenance topics. Blogger Paul Lachance is president and chief technology officer for Smartware Group.
This article collection contains several articles on the vital role of plant safety and offers advice on best practices.
This article collection contains several articles on the Industrial Internet of Things (IIoT) and how it is transforming manufacturing.
This article collection contains several articles on strategic maintenance and understanding all the parts of your plant.
click me