Green building as a commercial real estate strategy is gaining traction and will increase significantly in the next five years, according to a survey published this month in Real Estate Investor and Retail Traffic magazines. More than half of corporate respondents in the study said they now own, manage or lease a green property. In five years, however, 84 percent said they expected to have a hand in a green property.
The same trend was illustrated for developers taking part in the survey, 39 percent of whom said they now are involved with green properties. Seventy-seven percent expect to own, manage or elase a green property in five years.
"I think there is a tremendous amount of momentum for sustainable development," said Tom Bisacquino, president of the National Association of Industrial and Office Properties. "The cost of energy is growing exponentially, and many feel that energy costs will continue to rise. So the business case for developing green is getting stronger and stronger."
Corporate respondents most frequently cited energy efficiency as the most important factor when choosing green buildings, most likely because of the associated cost savings.
One point of debate among respondents was the true cost of adding green elements to a project, typically pegged at 1 percent to 2 percent. Many, however, indicated the true cost is 10 percent or more.
Source: GreenerBuildings.com