Building green can save money
A visiting professor at UC Berkeley compared real estate transactions and found that office buildings with energy-efficiency certification get higher rents, more tenants and higher sales prices.
Dr. Nils Kok presented the information at a workshop entitled "Doing Well by Doing Good: Green Office Buildings" last month. The study included about 10,000 buildings in the United States and concluded that those with a green rating commanded rents that were 3% higher than comparable non-green structures - and the sales prices increased 16%.
Studies showed that a $1 dollar saving in energy costs translated to an $18 increase in value. And the gain in value appeared to be greater in smaller or low-cost regions, and in less tony neighborhoods.
The study concluded that sustainable builders have longer economic lives due to less depreciation and less volatility in value.
Dr. Nils Kok presented the information at a workshop entitled "Doing Well by Doing Good: Green Office Buildings" last month. The study included about 10,000 buildings in the United States and concluded that those with a green rating commanded rents that were 3% higher than comparable non-green structures - and the sales prices increased 16%.
Studies showed that a $1 dollar saving in energy costs translated to an $18 increase in value. And the gain in value appeared to be greater in smaller or low-cost regions, and in less tony neighborhoods.
The study concluded that sustainable builders have longer economic lives due to less depreciation and less volatility in value.