environmental economic Value
The additional value in perception and public relations that results from environmental sustainability
The economic value of green buildings goes beyond tangible costs, since the perception in the market can be a significant asset. High-performance buildings generally enjoy higher property value, sales, rents, and occupancy rates.1 For example, on average a 10% reduction in energy use typically results in an additional 1.1-1.2% increase in market value.2 Similarly, for every $1.00 psf savings in operating expenses, property value can increase by $10.00 psf, based on a 10% market capitalization rate.3
Being aware of the additional market value of high-performance buildings is key to determining how and where money should be spent. By considering a building’s compliance to regulatory policies, direct values and indirect values, we can begin to create designs that yield a higher return on investment.