Energy efficient green buildings have lower energy bills and interior designs that improve the occupants’ experience and worker productivity. But does all that translate to greater market value? Increasingly, evidence says the answer is yes.
Most available data shows increased value for ENERGY STAR- or LEED-certified buildings compared to standard buildings in United States markets. That conclusion is based on ever more robust data covering 1.5 billion square feet of LEED-certified space and 2.5 billion square feet of ENERGY STAR-certified space in the U.S. today. In comparison with conventional buildings, studies in the U.S. have found that certified buildings have:
- Rental rates higher by 2 to 17 percent
- Resale value improved by 5.8 to 35 percent
- Occupancy rates higher by 2 to 18 percent
- Operating expenses lower by 30 percent
- Net operating income higher by 5.9 percent
- Capitalization rates lower by 40 to 55 basis points
In Australia two recent studies affirm these results. For buildings that are Green Star rated two studies report a value premium of 4-12 percent, and among those buildings reporting under the national NABERS program, a 0.6-9 percent premium depending on the buildings level of achievement.
Learn more about the Institute for Building Efficiency.