Financial Benefits:

Common thinking is green building is more costly that conventional construction and design. When compared to a buildings life's cycle, operating costs and the ever increasing costs of fossil fuels, the average cost benefit to green building can be substantial. With growing product development in this market, many of these solutions are not as substantially costly as may have been the case 20 even 10 years ago.

Studies have shown over a 20 year life period, green buildings have yielded $53 to $71 per square more than conventional buildings when comparing total investment.(1.)

While demand for real estate is still shaky, the iron has not cooled on LEED certified development. Confirming the stronger sale and rents for green building investments, studies of the residential and commercial real estate market have found that LEED and Energy Star certified buildings achieve significantly higher rents, sale prices and occupancy rates as well as lower capitalization rates potentially reflecting lower investment risk.(2.,3.,4.)

  1. Langdon, Davis. The Cost of Green Revisited. Publication. 2007.
  2. Fuerst, Franz; McAllister, Pat. Green Noise or Green Value? Measuring the Effects of Environmental Certification on Office Property Values. 2009
  3. Pivo, Gary; Fisher, Jeffrey D. Investment Returns from Responsible Property Investments: Energy Efficient, Transit-oriented and Urban Regeneration Office Properties in the US from 1998-2008. 2009.
  4. Fuerst, Franz; McAllister, Pat. An Investigation of the Effect of Eco-Labeling on Office Occupancy Rates. 2009.