Written by Brian K. Coyne, Commercial Advisor

Seems everywhere you turn these days something is being touted as “green”. The green they’re referring to is being ecologically or environmentally friendly. However, the other side of this story is also green, as in cash money.

Substantially higher construction costs are no longer the case, with most new green buildings being on par with traditional methods. Even in the case of higher initial costs the savings on long term operating expenses will more than make up for the extra expenditure.

The savings on heating, cooling and energy equates to enhanced net operating income for the property and consequently increased value. The lower expenses also make the building more attractive to tenants and thus increase the rental rate and lower the vacancy rate.

Another sometimes forgotten economic benefit is improved employee productivity. Whether owner or tenant occupied a happy workforce reduces time lost to sickness and increases productivity making the business more efficient and better able to compete.

Public perception is also important, as the general public becomes more in-tune with the growing green movement they will expect the businesses they utilize to be equally as concerned.

Certainly any new construction needs to use some green technology to reduce energy consumption, water use, and waste or improve indoor air quality. Without these basics your building will fall into functional obsolescence before its time.

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