Green Still Pays
Monday, July 23, 2012
REALTOR Magazine -- Even in a slow economy, giving your existing office building an environmentally focused retrofit could yield a rent premium, says Norm G. Miller, a professor at the Burnham-Moores Center for Real Estate at the University of San Diego and co-author of the paper The Economics of Green Retrofits.
How much will a green retrofit of an office building yield in additional revenue?
Our research looked at 374 Class A and Class B office buildings that held a LEED Existing Building: Operations and Maintenance certification from the U.S. Green Building Council. We found that these EBOM-certified buildings averaged 7.1 percent higher rents than comparable buildings that weren’t certified. If the building also had an Energy Star rating from the U.S. Department of Energy, that rent premium rose to 10 percent. (Full Story)