Green Buildings Prove Lucrative to Developers

March 27, 2013- Recent studies shows that not only are environmentally friendly building projects being taken seriously, they are proving to be big business.

The green market has become a highly lucrative niche, and there are a lot of suppliers, designers and contractors quickly seeing the economic and environmental benefits of green builds. It’s not just those involved with construction that are taking interest -- tenants have a big interest in the development of eco-friendly projects, too.

But while one might think the domestic-building sector is driving the growth in eco-friendly building, it’s the commercial sector that’s experiencing the most expansion -- in both new builds and renovations.

In 2010, 33 percent of all new commercial construction projects were green builds, weighing in at an estimated cost of $54 billion.

It is estimated that by 2015 the number of commercial green buildings will have tripled, creating a real estate market worth approximately $130 billion in new construction projects and a further $16 billion in renovation projects.

Environmentally minded construction projects are altering the dynamics of the real estate market. Tenants’ demands, government requirements and investor desires are all contributing to the development of green construction projects.

Not all green buildings are the same. It’s in the higher-grade Class A sector where the environmental concept has really gained traction. Class A builds utilize state-of-the-art technology, and rents for these for these premier offices are higher.

While government regulation and legislation have an influence, tenant demand is a key driver behind green building. Many tenants prefer the lower operating costs, increase in employee productivity, and the increase in rapport with partners and clients that comes with a superior, eco-friendly building.

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Carnow Conibear and Associates is a demonstrated leader in the occupational and environmental health professions since 1975. To find out more, click here or call us at (800) 860-4486.