Environmentalism is all the rage right now, isn’t it? It’s good, but we need to sift through some of the noise and clearly identify correct information. With respect to the costs of green building, depending on who you talk to, it’s possible to get conflicting information. To prove this point, try to survey a couple real estate pros (informally, of course) and you may be surprised by what you hear. When I’m around seasoned real estate pros, I make it point to ask them what they think about green building. The information is rarely consistent. Below, we have three legitimate reports seeking to clarify the discussion on green building costs. These reports are free, and by all means, email this post around to your real estate professional friends. Let’s make this information viral. Let’s get past any misunderstandings and start building better, more efficient buildings.
- Energy Efficiency in Buildings: Business Realities and Opportunities, Summary Report, World Business Council for Sustainable Development. Although focusing more on energy efficiency in buildings (as opposed to the entire environmental picture of a building), this report found, among other things, that the costs of green building are often misunderstood, and even overestimated by as much as 300%.
- Cost of Green Revisited: Reexamining the Feasibility and Cost Impact of Sustainable Design in the Light of Increased Market Adoption, Davis Langdon. Using the USGBC’s LEED system as a parameter, this report found that there is no significant difference in average costs for green buildings as compared to non-green buildings.
- Green Buildings and the Bottom Line: The ‘New Reality’ of Green Building, From Environmental Cause to Financial Opportunity, Building Design + Construction. Assessing all the different product types individually, this white paper discusses the costs and benefits of green buildings and presents a 10-point action plan for consideration by all the green building stakeholders.
I think we’re at the point where the information will start to take hold and green building practices will spread. It will gather such momentum that all the players in the real estate world, whether lenders, investors, contractors, engineers, architects, lawyers, owners, or developers, will have a seat at the table and will push for smarter, greener decisions.