Green buildings are profitable, cost-effective and good for the economy

Buildings account for over 40 percent of global energy-related CO2 and if we need to meet the meet global carbon reduction goals, then according to a IPCC report, we must ensure a “rapid and far-reaching” sustainable transition in land, energy, buildings, transport and cities. Green buildings, certified by LEED, actually offer a global solution for cities, communities and neighborhoods. The sustainable design of these building are reducing carbon emissions, energy and waste; conserving water; prioritizing safer materials; and lowering our exposure to toxins.

As per World Green Building Trends SmartMarket Report in 2018, the people associated with the building and construction industry expect the majority of projects in the next three years to be green buildings. Creating spaces that support health and well-being, as well as the economy and environment will accelerate sustainable development and deliver a better standard of living.

In the U.S., clients now not only demands healthier buildings but at the same time look at the economic benefits. This behavior of clients trigger growth of green buildings. Operating cost savings, shorter payback periods and increased asset value in new green buildings and green retrofits have been consistently reported.

According to an article published in new.usgbc.org, upfront investment in green building also makes properties more valuable, with a growing number of building owners seeing a 10 percent or greater increase in asset value. The percentage of owners reporting that level of growth has nearly doubled since 2012. Other benefits of green buildings, as explained in this article are:

Green buildings reduce day-to-day costs year-over-year. LEED buildings have reported almost 20 percent lower maintenance costs than typical commercial buildings, and green building retrofits typically decrease operation costs by almost 10 percent in just one year.

Green buildings are for every market and every community. A report on the Los Angeles market indicated that while traditional (non-LEED certified) buildings receive an average of $2.16/ft2, tenants were willing to pay $2.91/ft2 for LEED certified space.

The University of Texas at Austin looked at resale value on homes in the Austin-Round Rock Metropolitan Statistical Area and found that homes built to LEED standards between 2008-2016 showed an eight percent boost in value, while homes built to a wider range of green standards saw a 6 percent increase in value.

To-date, green building has created millions of jobs and contributed hundreds of billions of dollars to the U.S. economy. From 2011-2014, national green construction generated $167.4 billion in GDP. In Texas alone, more than 720,000 jobs were attributable to green construction during that time. In 2014, LEED-related employment directly contributed $1.09 billion of individual income tax to states.

Green buildings don’t create happier workers!

A new study coauthored by a UC Berkeley researcher says that occupant satisfaction with LEED-certified office building environments appears to decline with time.

If you thought working in a green building leads to greater satisfaction in the workplace, then it is the time for a rethink! According to a new research from the University of California, Berkeley, and the University of Nottingham in the United Kingdom, workers in LEED’s certified green buildings appear no more satisfied with the quality of their indoor workplace environments than those employed in conventional buildings.

The findings of this new research was published in April issue of the journal Building and Environment and concludes that most workers do not experience a higher level of workplace satisfaction simply because they work in LEED certified buildings. This findings are based on the survey responses of 21,477 individuals in 144 mainly large office buildings, mostly in the United States. Of those buildings, 65 are LEED certified. Occupant satisfaction with LEED-certified office building environments appears to decline with time, with the greatest level of satisfaction reported during the first year that a worker spends in a green building.

Researchers, however, said that these conclusions does not mean green certification is outdated, costly or useless. Green buildings do have positive effect on people health and well-being, climate change and energy security.