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.


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 2013 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...
A cool solution: Collaboration, chemistry leads to foundry coat product development; See the 2015 Product of the Year Finalists
Raising the standard: What's new with NFPA 70E; A global view of manufacturing; Maintenance data; Fit bearings properly
Sister act: Building on their father's legacy, a new generation moves Bales Metal Surface Solutions forward; Meet the 2015 Engineering Leaders Under 40
Cyber security cost-efficient for industrial control systems; Extracting full value from operational data; Managing cyber security risks
Drilling for Big Data: Managing the flow of information; Big data drilldown series: Challenge and opportunity; OT to IT: Creating a circle of improvement; Industry loses best workers, again
Pipeline vulnerabilities? Securing hydrocarbon transit; Predictive analytics hit the mainstream; Dirty pipelines decrease flow, production—pig your line; Ensuring pipeline physical and cyber security
Upgrading secondary control systems; Keeping enclosures conditioned; Diagnostics increase equipment uptime; Mechatronics simplifies machine design
Designing positive-energy buildings; Ensuring power quality; Complying with NFPA 110; Minimizing arc flash hazards
Building high availability into industrial computers; Of key metrics and myth busting; The truth about five common VFD myths

Annual Salary Survey

After almost a decade of uncertainty, the confidence of plant floor managers is soaring. Even with a number of challenges and while implementing new technologies, there is a renewed sense of optimism among plant managers about their business and their future.

The respondents to the 2014 Plant Engineering Salary Survey come from throughout the U.S. and serve a variety of industries, but they are uniform in their optimism about manufacturing. This year’s survey found 79% consider manufacturing a secure career. That’s up from 75% in 2013 and significantly higher than the 63% figure when Plant Engineering first started asking that question a decade ago.

Read more: 2014 Salary Survey: Confidence rises amid the challenges

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.