The ROI of Green Building

Posted September 20, 2016 | Tags: Green building

Green building design seeks to do something that has never before been done in the history of the world - design truly sustainable buildings. What sustainable means in this context is that these buildings are less likely to cause a lasting, negative impact on the environment.

Green building design marries the concepts of safe building along with the newest technology available to create a building that gives back to the environment, slowly chipping away at the impact on the surroundings caused by its construction.

In many businesses cases, the idea of green construction is met with mixed emotions. Some see the increased price tag at the start of the construction and consider the short-term problems with paying extra for a construction project. Recent research into the material shows that green building does have a good ROI, although it may take some time realizing it.

Design and Construction Costs
While the prevailing knowledge is that sustainable development is more expensive, the truth of the matter is that that expense can be reduced with smart green building design. Building green does not have to cost as much as some people fear it might.

In the past, a sustainable building might cost as much as ten to fifteen percent more over the cost of building traditionally. Modern materials, construction technology, and methods have made it more affordable to build sustainably.

While the difference does still exist between green construction and traditional methods, the gap is nowhere near as much as many business owners fear it to be.

Asset Value

The environmental impacts of construction are widespread. As more and more laymen become familiar with how much construction affects the environment, buildings that are built green will begin to look a lot more attractive.

Around the world, apartments built along green building design principles are more desirable and command a higher rent values. In countries that have adopted green building long enough for it to become common, there is a distinct movement towards these buildings and a general exodus from buildings that are termed "brown", leading to those properties selling or renting for a lot less.


Operating Costs

Green buildings have a distinct advantage when it comes to operating costs since they reduce cost through clever design practices. Over the long run green buildings see less water and electricity usage compared with their traditionally constructed counterparts. This equates to a large payback and can cause a building owner to recoup the minor additional cost of construction through savings from water and energy.

The operating cost savings for a green building will reduce green building construction and design cost premiums.

Green Buildings and the Future of Development

Global climate change is routinely discussed as one of our biggest problems. As it becomes more and more prevalent in the daily discussion, elements such as building design will start to matter more to people.

By utilizing sustainable development, we can attempt to slow the degradation of our environment, possibly allowing us time to find solutions to environmental issues. Green buildings can play a major part in these solutions. By adopting them now, a business owner will be ahead of the curve, being able to sell a green building for far more than a traditionally constructed one in the future.

Building owners investing in green development are in the win-win situation of having a building that's environmentally sensitive as well as paying them back through the compounded savings they are likely to generate over their lifetime.

Interested in green building construction and design?  Contact Bill Whittaker, Registered Architect to learn his green building thoughts, preferences, and experiences.
 

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