ACHRNEWS

Nov. 14, 2005: Building Green Adds Value, Says Study

November 14, 2005
COVENTRY, England - A new study concludes that a clear link is beginning to emerge between the market value of a building and its green features.

"Green Value" is an independent research study that looked at green buildings in the United States, Canada, and the United Kingdom. The study reports that not only are green buildings good for the environment and provide healthier places to live and more productive places to work, they also can command higher rents and prices, attract tenants more quickly, reduce tenant turnover, and cost less to operate and maintain.

The international study was led by RICS, of Coventry, England, in partnership with 10 government and private-sector organizations.

Initiated and led by RICS Canada past-chairman Chris Corps, he stated, "We weren't surprised that evidence of improved asset value exists, but didn't expect to find that productivity benefits can even exceed the building's value." Michael Brooks, executive director of Realpac, noted, "If industry and governments can tap these advantages, green buildings will be profitable. This opens potential commercial opportunities."

Canada Green Buildings Council President Thomas Mueller said the conclusions show there is more work to be done on the value of green buildings, but the findings are encouraging. "Evidence that sustainable practices can add value supports the claims and direction of the green building industry. This is an important step towards greater acceptance of green buildings in the marketplace."

For a copy of the Green Value report, go to http://www.rics.org/NR/rdonlyres/93B20864-E89E-4641-AB11-028387737058/0/GreenValueReport.pdf.

Publication date: 11/14/2005