The Greener Side of Commercial Real Estate Investment

Green building and real estate is the next big thing, not because it's trendy but because going green is smart, responsible and necessary. Commercial real estate investors and builders must consider the value of going green in order to compete in the real estate market of the future.

Increase Your Profits With Sustainable Commercial Building

In 2007 green building practices are gaining popularity at an accelerated rate. The American consciousness of environmental issues has changed and the financial benefits of building, living and working green are becoming more attractive to residential and commercial real estate investors. Green design spotlights a variety of environmental and human health concerns.

- Reduction of exposure to toxic materials
- Conservation of non-renewable energy and materials
- Minimization of the ecological impact of building
- Utilization of renewable energy and recycled or earth-friendly materials
- Protection of local water, air, soil, plants and animals
- Support of transportation alternatives including walking, bicycles, mass transit and alternative fuels

Many people are also surprised to discover that in 2007 green design and building often costs the same as building more traditional designs. According to the July 2007 issue of Today's Buyer's Rep, in an article entitled Housing Trends Worth Watching by editor Julie Collins, a recent survey by the National Association of Home Builders (NAHB) shows that 97,000 homes have been built and certified by green building programs around the U.S. This is a 50% increase from the last survey conducted in 2004. The Santa Monica Green Building Program, http://greenbuildings.santa-monica.org/index.html, reports, "Buildings have impacts on health as well as the environment. It is estimated that half of all commercial buildings suffer from air quality problems, resulting in poorer health of workers and other occupants".

Green Building and Design Options for Commercial Property Investments

In the commercial real estate industry economics and financial profit play an important part in green building. Businesses, corporations and investors are more likely to invest in green building if they know it will increase their bottom line. According to Commercial Investment Real Estate Magazine, http://www.ciremagazine.com/article.php?article_id=80, "When analyzing green economics, commercial real estate professionals should consider long-term operating and maintenance costs. These factors are beginning to affect leases, insurance rates, loans, and other real estate practices as tenants, owners, banks, and communities recognize energy efficiency's value". As technology advances and improves the performance of lighting, heating, cooling and water systems the operating costs of buildings will decrease. This will attract tenants and increase the value of your commercial property to future investors. When building or purchasing a green commercial design look for the following:

1. Energy Efficient Lighting Systems
2. High Performance Glazing
3. Ventilation Systems
4. Water Efficiency Systems
5. Green building materials (i.e. recycled materials or materials from renewable resources)

Incentives for Commercial Green Building

Increased profitability is the number one reason commercial real estate investors are moving towards more green building and design features. According to Building Momentum: National Trends For High Performance Green Buildings, a report prepared by the US Green Building Council for the US Senate Committee on Environment and Public Works, "Design features that enhance energy efficiency and indoor air quality are cost effective strategies for improving worker productivity and product quality. An increase of 1 percent in productivity (measured by production rate, production quality, or absenteeism) can provide savings to a facility that exceeds its entire energy bill". The report provides examples such as Lockheed, an engineering development and design facility in Sunnyvale, California and the Postal Sorting Facility in Reno, Nevada. Lockheed built a high performance green facility and experienced a 15% decrease in employee absenteeism that recuperated the extra costs of their facility within the first year. The Postal Sorting Facility in Reno experienced a 6% increase in the number of items sorted per hour when an alternative lighting system was installed.

In addition federal, state and local governments are now also offering incentives to commercial builders and investors interested in a green approach. According to the Building Momentum report "public and private entities offer financial and regulatory incentives. New York, Maryland and Oregon offer tax credits for LEED (Leadership in Energy and Environmental Design) certified buildings. Portland (OR) and Seattle (WA) offer grants for energy modeling, commissioning and related costs." The report continues to explain that, "Arlington County (VA) links preferred zoning considerations for LEED projects. Santa Barbara (CA) and Scottsdale (AZ) are some of the first jurisdictions to offer expedited permit reviews for buildings with certain high performance features. Tax credits and other incentives are part of broader green building assistance programs offered by a growing number of state and local governments across the country." Green building programs have been developed in California, Colorado, Maryland, New York, Pennsylvania and Wisconsin. As the green building and commercial investment trend continues tax incentives will increase and green building and design will continue to pay for themselves in more ways than one.

Listed below are more articles related to the above article from the "Commercial Real Estate" article category.

People interested in the above article "The Greener Side of Commercial Real Estate Investment" are also interested in the related articles listed below:

Finding Commercial Investment Property in Santa Barbara

If you are planning to move to Santa Barbara or engage in a Santa Barbara real estate investment, getting information on various neighborhoods is a great way to familiarize yourself with the surroundings. Read on for the low-down on popular areas of Santa Barbara before you make the big move.

Buying a Commercial Property at an Auction

Buying a commercial property as an investment is not something for the novice or unwary. The market is primarily made of up of professional investors who have money to spare. In many cases commercial properties go for more than residential property. You could end up with a greater profit, but it can also be more risky.

Commercial Real Estate Investing

In the business of the real estate investment, commercial real estate investing is an important element of the whole investment scenario. While most commercial investors would like to believe that this is a specialized sector, the truth remains that commercial real estate investment is only as safe or as risky as any other businesses and needs experts and the right advice to achieve success.

Pune Property Segment Gears up for New Challenges

Pune's property segment in fast evolving its profile to become one of the most active real estate market in the country. Recently, the Promoters and Builders Association of Pune (PBAP) launched a realty fund worth Rs 26 crore. This fund would invest up to Rs 5 crore per residential project in Pune to help the small developers to complete their projects quickly.

10 Things You Need to Know Before Buying A Seized And Foreclosure Property

At some point in our lives we feel the need to own our very own property. I mean, for how long are we going to rent. Renting works out to be expensive. True, buying or investing in real estate is rather expensive, and can literally drain you of your resources, however there are many options that you can choose in order to buy property.

The Secret of Looking For Commercial Office Space

When you own and supervise your own Business, finding the perfect piece of commercial retail space for rent is necessary. Whether you are hunting for an office in Paris or a suite in Los Angeles, understanding your professional necessities will help you obtain the ideal space for retail space for rent.

Investing in Commercial Real Estate

In this current residential market place may people are hesitant to invest in real estate. Commercial Real Estate is entirely different and a good way to still invests in property. The laws are very different between commercial and residential so it’s a good idea to find out all the laws and consult a lawyer well versed in commercial real estate before investing.