Green Building Trends in Commercial Real Estate
||Green Building Trends in Commercial Real Estate
||21st Annual European Real Estate Society Conference in Bucharest, Romania
||The interest in green building solutions including materials, products, technology and services has improved significantly all over the world in the past years.A green building can be any project that is built or renovated with due concern for minimizing the full environmental impact of its design, construction/renovation, operations and (possible) de-construction. Key findings for green buildings:• Construction Costs• Building Value• Operational Costs• Health and Productivity• Risk Mitigation Construction CostResearch shows that building green does not necessarily need to cost more, particularly when cost strategies, program management and environmental strategies are integrated into the development process right from the start. Overall trend towards the reduction in design and construction costs associated with green building as building codes around the world become stricter, supply chains for green materials and technologies mature and the industry becomes more skilled at delivering green buildings.Building ValueEvidence from studies carried out over the past decade, primarily based on data gathered from certified office buildings in the United States and UK, has shown that green buildings tend to have higher asset values than their conventional code-compliant counterparts within a range of 9%-13%:•Higher rental/lease rates•Higher occupancy rates•Lower operating expenses•Lower yieldsIn the study of NABERS - rated buildings in Australia, it is important to note that while the higher levels of performance (NABERS 5*) tended to achieve a sales premium of up to 21%. A building in Romania has been sold to an international investment fund at 7.5% yield comparing with the prime office market , which is situated around 8.0 %. Operational CostGreen buildings have been proven to save money through reduced energy and water use and lower long-term operations and lower maintenance costs. High-performing green buildings need to be backed up by robust commissioning, effective management, leadership and communication in order to achieve their predicted performance.HealthGreen design attributes of buildings and indoor and outdoor equipments can improve worker productivity and occupant health and well being and stress reducing.Risk MitigationRisk factors can significantly affect the rental income and the future value of real estate, affecting their return on investment. Investor risk relates to the potential reduction in value.
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||C: Green Buildings & Environmental Policies
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