There has been increasing news about “green” buildings, and the importance of LEED Certification. I was on the U.S. Green Building Council’s website last weekend (USGBC oversees the LEED system) and came across a news release on a study done by CoStar Group, a leading real estate research firm, on the financial benefits of building “green.” The findings were pretty interesting, and underscored the importance of “green” business practices. Below please find the first part of the report.
A new study by CoStar Group has found that sustainable “green” buildings outperform their non-green peer assets in key areas such as occupancy, sale price and rental rates, sometimes by wide margins. The results indicate a broader demand by property investors and tenants for buildings that have earned either LEED® certification or the Energy Star® label and strengthen the “business case” for green buildings, which proponents have increasingly cast as financially sound investments. According to the CoStar study, LEED buildings command rent premiums of $11.33 per square foot over their non-LEED peers and have 4.1 percent higher occupancy. Rental rates in Energy Star buildings represent a $2.40 per square foot premium over comparable non-Energy Star buildings and have 3.6 percent higher occupancy. And, in a trend that could signal greater attention from institutional investors, Energy Star buildings are selling for an average of $61 per square foot more than their peers, while LEED buildings command a remarkable $171 more per square foot. Andrew Florance, president and CEO of CoStar, called the findings a “strong economic case for developing green buildings” at a recent seminar hosted by the District of Columbia Building Industry Association (DCBIA) where he presented results from the CoStar study last month.
To read the full release, please click here: http://www.costar.com/news/Article.aspx?id=D968F1E0DCF73712B03A099E0E99C679
To view CoStar’s full presentation of their findings, please visit: http://www.costar.com/partners/costar-green-study.pdf