Why high performance green buildings are the best
This information was originally published in the World Green Building Council report, “The Business Case for Green Building: A Review of the Costs and Benefits for Developers, Investors and Occupants.” Access the full report.
By greening our built environment the green building industry can deliver on large-scale economic priorities such as climate change mitigation, energy security, resource conservation and job creation, long-term resilience and quality of life.
Today, green buildings can be delivered at a price comparable to conventional buildings, investments can be recouped through operational cost savings, and workplaces can become more productive with the right design features.
Here are the top five compelling benefits that green buildings bestow on stakeholders.
1. Design and construction costs
As building codes around the world become stricter, supply chains for green materials and technologies mature and the industry becomes more skilled at delivering green buildings, the designs and construction costs associated with green building are being reduced.
2. Asset value
As investors and occupiers become more knowledgeable about and concerned with the environmental and social impacts of the built environment, buildings with better sustainability credentials will have increased marketability. Additionally, there is a demonstrated link between the green characteristics of buildings and the ability of these buildings to more easily attract tenants and to command higher rents and sale prices.
3. Operating costs
Green buildings have been shown to save money through reduced energy and water consumption and lower long-term operations and maintenance costs. The energy savings alone typically exceed any cost premiums associated with their design and construction within a reasonable payback period.
4. Workplace productivity and health
There is an emerging body of evidence suggesting that the physical characteristics of buildings and indoor environments can influence worker productivity and occupant health and well-being, resulting in bottom line benefits for businesses.
5. Risk mitigation
Sustainability risk factors can significantly affect the rental income and the future value of real estate assets, in turn affecting their return on investment. Regulatory risks have become increasingly apparent in countries and cities around the world, including mandatory disclosure, building codes and laws banning inefficient buildings.