Greener buildings equal bigger returns, CB Richard Ellis report says
- 11 October 2011
NEW YORK: New research from an ongoing study managed by CB Richard Ellis Group, Inc. (CBRE) reveals that green buildings generate greater investment returns, presenting a clear economic case for more sustainable investment in the industry.
The findings, which were announced at the US Green Building Council’s Greenbuild International Expo and Conference, show that there is a greater demand and higher value placed on green buildings – especially those that are LEED certified – proven through higher occupancy and rental rates.
The study reviewed around 150 CBRE-managed office buildings, LEED-certified builds of which had an average 3.1% improvement in rental costs and occupancy over three years, outperforming the general market.
Of the more than 2,500 occupants surveyed, findings also showed that people's knowledge of sustainable building is accelerating, and they are placing a greater significance on green features when considering long-term accommodation.
The results are part of an ongoing report between CBRE, the University of San Diego’s Burnham-Moores Center for Real Estate and McGraw-Hill Construction, which seeks to measure the economic benefits of sustainable buildings, as a framework for investments in retrofits. A full update will be announced later in the year.
Molly Webb, Head of Smart Technologies, The Climate Group says: "CBRE’s results offer further evidence that sustainability is good for business. With this report, property owners and managers will have more confidence that making buildings smarter and greener pays off, plus the opportunity for higher rental income will attract investors. This is another clear economic case for a Clean Revolution in the building sector, which we can see is already underway.”