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Greener buildings not pricier

Crain's New York -- Building green high-rise towers in New York City is not the higher cost option it has long been thought to be, according to a new study that will be released late Wednesday by the Urban Green Council.

In fact, the study finds that there is no significant difference in construction costs of residential towers and commercial interiors when comparing those that meet Leadership in Energy and Environmental Design (LEED) standards and those that do not. The elimination of the price gap is occurring because the cost for LEED-compliant materials is dropping as they enter the mainstream and developers are saving money elsewhere by making different choices, such as opting for less expensive bamboo countertops instead of granite.

“The study confirmed more firmly that cost should not be a barrier,” said Russell Unger, executive director of Urban Green Council.

The study was based on an examination of the costs for 38 high-rise residences and 25 commercial interiors. Construction cost did not include acquisition fees, soft costs, site work and parking structure costs.

The study did not provide data on whether LEED buildings outperformed non-LEED buildings in the market. Mr. Unger noted that it was difficult to get developers to divulge construction costs let alone disclose information on returns. However, other studies, including a recent one conducted by CoStar Group and the University of San Diego, have found that green commercial buildings outperform non-green buildings in occupancy, sale price and rental rates. (Full Story)