A new trend has emerged in the green building movement, as institutional investors and stockholders begin to realize the value of investing in efficient buildings. As such, companies and investment trusts that own properties across the United States are making sure that they increase their portfolio of properties that are classified as green in terms of building efficiency.
Real estate investment trusts have been turning to the Leadership in Energy and Environmental Design program to help them bring a lot of the buildings under their control to a more efficient specification. These days, more than one third of the buildings that they control around the country are thus categorized.
It’s interesting to note that, despite the downturn, interest in green investments remains high. Investors were able to look into the long-term practicality of building efficiency investments, with an eye on sustainability. Energy efficiency is a hot topic conversation among building owners and occupiers alike.
Leaseholders are helping to drive this position forward. They are very critical of building efficiency when it comes to a place to operate. Tenants are increasingly insistent that the buildings they choose to occupy are green. They not only want to be seen to be helping in the movement toward sustainability and credibility, but increasingly, their employees are demanding it.
It is interesting to note the tenants are willing to pay a premium to occupy space that is classified and categorized according to LEED standards. Owners are well aware that they are likely to retain tenant occupancy and to be able to realize premium rates if they make the investment in building efficiency now.
Upgraded and efficient buildings will be far cheaper to operate and investors have not overlooked this fact. This will be a much more efficient and manageable investment, a trend that will undoubtedly increase. For owners and for energy efficiency chasing tenants, it’s a winning to position all around.
Even though green buildings cost 4 to 5% more than their counterparts during the construction phase, the costs associated with bringing these buildings to the market can be absorbed through the early years through operational efficiencies. This is no doubt why the real estate investment trust business has been actively involved in this issue since 2005, when they established the Leader in the Light program.
Throughout society, there is a growing call for sustainability and energy efficiency. Building efficiency standards must continue to grow to keep pace with this demand.
Daniel Stouffer has a lot of information about building efficiency and how a visit to www.verisae.com can benefit you.
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