The Commercial Real Estate Revolution

“A new study by CoStar has found that sustainable “green” buildings outperform their non-green peer assets in key areas such as occupancy, sale price and rental rates, sometimes by large margins. According to the CoStar study, LEED buildings command rent premiums of $11.33 per square foot over their non-LEED peers and have a 4.1 higher occupancy rate.” p. 143 The Commercial Real Estate Revolution

For details on the CoStar report: Click Here

The NuWire investor blog compiled some of the data collected at the end of 2007 that shows the value of building LEED . “Green buildings generate 3.5 percent higher occupancy rates, 3 percent higher rental rates and have a 6.6 percent improved return on investment, Katz said. Additionally, green buildings see an average increase of 7.5 percent in building values compared to conventionally constructed buildings, according to a study by McGraw-Hill Construction. These findings are shored up by anecdotal evidence from across the country. For instance, a LEED Gold residential apartment building in New York City, The Solaire, commands rents 5 percent higher than typical market-rate buildings, according to a 2004 article by Multifamily Executive. An initial sampling of LEED-certified buildings found the initial investment was returned in an average of 2.6 years and the buildings had annual net savings of more than $170,000, according to Buildings.”

For the entire article: Click Here.

The white paper Does Green Pay Off? provides a more in-depth study of how conventional buildings compare to LEED certified building. If you would like a copy of the white paper click on rexmiller.net and put Green Whitepaper in the subject line.