With the talk of global warming and climate change dominating headlines these days, many industries, including the real estate sector, are contemplating on finding ways to reduce waste, pollution and improve profits at the same time.
The home building industry now has totally bought into the idea of green building, and a lot of reasons are in store for why they are rerouting themselves in this direction.
How Fast Should Building Green Go For The Real Estate Industry?
The major question these days is that, how quick should the industry adapt the concepts of “building green”, and when would it become the norm for all home developer decisions?
Since 2007, the industry has seen a 70% rise in total LEED registered and certified home building projects, on top of more than 50% cumulative growth in 2006. The reason is that, there have been major events or developments in the past two years, among them are the outpouring of concern over carbon dioxide emissions from energy use of all kinds, Al Gore’s Nobel Peace Price for An Inconvenient Truth, and the effects made by Hurricane Katrina and its exposure of the vulnerability of a major American city to natural forces.
With these events in mind, much of the public today is demanding action on climate change, in ways both small and significant. Because most major US businesses still know how to listen to the consumer, it realizes that a large part of its future success would surely come from reducing its carbon footprint, through initiating energy conservation programs and greening new buildings.
Potential Benefits For Home Builders Who Go Green
For home developers who would embrace the concepts of green building, there are a lot of potential benefits that would await them. Among the positive aspects of going green are:
- The Demand is Present.
Many commercial office tenants are realizing the business case for productivity and health in LEED-certified buildings, and are looking at options that offer superior daylighting and indoor air quality. A previous survey on businesses found out that the levels of employee satisfaction with their working conditions showed greater increases when they ere working in more energy-efficient and greener workplaces, than on non-certified workplaces. In the public sector, the demand is also growing, as one agency after another makes a commitment to LEED-certify all future public buildings.
- More Savings On Energy
This idea has gone from being a “good one” to a necessity for many businesses. It’s not simply because energy conservation has a positive life-cycle cost impact, but also that it offers a direct reduction in a firm or corporation’s total “carbon footprint.” A number of researches have indicated that energy conservation not only also offers a positive way to save and make more money, but that it’s also the most cost-effective way to lower society’s carbon dioxide output, and only requires an ability to finance the investment, and won’t need to buy newer technology.
- Green Building Shows A Visible Sense Of Corporate Social Responsibility
Corporate America these days is desperate for getting good people. Going green helps improve a businesses reputation, and will help in them hiring the good types of people to work for them, especially the younger ones aged 24 to 45 . If a company cannot attract and keep these people by conforming their business practices to their values, then it would be quite hard for the firm to prosper. Green building represents a visible and more positive affirmation of the values of sustainability and social responsibility, and is an indicator of what companies’ need to make to get and keep good people.
- Going Green Helps Increase Property Values.
A study released in October by the University of San Diego, revealed that in the 2,000 large office buildings in the CoStar® database of commercial properties, the ones that had Energy Star-rated office buildings, which are those in the top 25 percent of energy performance, have had 2% higher occupancy levels, as well as $2 per square foot greater rents. In addition, Energy Star buildings as of 2006 sold at a 30% premium in dollars per square foot, as compared to non-Energy Star-rated buildings. This shows that green buildings are more valuable, and will continue to be become more valuable with each year.