Going Green Can MAKE You Some Green, Too (and LOTS of it)
Posted: July 27, 2010 by Edwina, Category:Sustainability

(image via totalAldo photostream under Creative Commons)
By now, there should be little debate over whether going green can save you plenty of money in the short term, especially in the commercial real estate market. Whether going green is truly the wisest long-term financial decision has been the subject of debate for some time. Well, it shouldn’t be any more. Witness this article from Rob Watson at Greener Buildings:
“The latest is from the Earth Advantage Institute in Portland, Oregon, which shows that third-party certified homes … command a whopping 18 percent price premium over non-certified homes … More interesting is that existing homes with green certification commanded an even higher premium of 23 percent compared with other existing homes sold, which indicates that the value of green grows over time. This value trend reflects the RealGreen Index data from the San Francisco Bay area, which shows that LEED Certified office and retail buildings have literally half the vacancy rate of non-certified projects.”
That’s backed up by the US Green Building Council:
“Executives reported that Green buildings have better financial performance than non-Green buildings in the following areas:
- Higher building values (72%)
- Higher asking rents (65%)
- Greater return on investment (52%)
- Higher occupancy rates (49%)”
There’s little question that going green can save you money on utility bills, for example. But there have been questions as to whether green structures, particularly commercial buildings, make more money over the long term. This should settle that debate.
The true value of any piece of real estate is its resale value. The premium that green-certified buildings now demand should be enough of an impetus to get everyone on board, especially considering how brutal the real estate market has been over the past couple of years. If commercial developers and property owners want to get back to the good old days of making serious money, they can do so in a hurry by arming themselves with this information. So if you want to re-coup some lost green, you should go green.




