Myths, Reality, and the Bottom Line of a Sustainable Building
Printer-friendly versionIs A Sustainable Profitable Building An Oxymoron?
Commercial development is about the bottom line. When asked, developers in the United States might say a sustainable approach would negatively impact their profitability. After all, don’t sustainable design, materials and construction cost more?
That is the perception. But what is the reality?
Sustainable Design Brings Proven Benefits To Building Owners and Tenants
According to the research firm Innovest Strategic Value Advisors, a Conde’ Nast “Green 11” notary, a strategic approach to energy brings benefits to both building owners and tenants. They include:
- Reduced Operating Costs—Most commercial and office buildings use 30%+ more energy than necessary. Cutting a building’s energy usage by 30% yields the same bottom line benefits as a 3% increase in rental income and a 5% increase in net operating income.
- Increased Productivity and Sales—Energy efficient air and lighting enhance employee productivity and reduce absenteeism. A California Energy Commission study showed daylighting improved retail sales 6% on average compared with non-daylit stores.
- Reduced Regulatory Costs—U.S. government mandates to reduce air emissions began with electric utilities but are expected to extend to commercial and industrial facilities. Companies that proactively make reductions on their own terms and schedules will occupy a superior competitive position.
- Increased Energy Security—Deregulation and security concerns increase energy price volatility. Companies that reduce energy consumption minimize exposure to such volatility.
- Enhanced Image—Companies known for proactive environmental policies present a positive image to customers, employees, investors, regulators and media.
- Improved Reliability—Good energy management practices help ensure reliability of equipment and manufacturing processes.
Meanwhile, the financial benefits for sustainable building continue to grow. More data indicates a link between climate change and energy usage and the need to reduce greenhouse gases. Business owners pushing to increase employee productivity see quantifiable statistics that support such technologies as daylighting and energy efficiency. Public interest in sustainable practices has become more acute, making a difference as to whether or not a corporation is viewed as positive.
Here you will learn about the myths and realities of high performance building and what owners can do to create buildings that are sustainable and profitable:
Myth: Sustainable buildings cost too much
Myth: The benefits are not clear and hard to quantify