The green building market is growing at a rapid pace in the U.S., accounting for an estimated 20 percent of all new commercial construction. What’s more, commercial building owners worldwide are expected to invest $960 billion in making green improvements to their buildings between now and 2023. For commercial tenants, this means that there are an ever increasing number of opportunities and reasons to lease green Commercial real estate in LEED-certified, green buildings.
So why should you lease green commercial real estate? Here are some of the top benefits to tenants:
1. Savings on Utilities
By definition, LEED-certified buildings are more efficient than their traditional counterparts. These buildings are equipped with technologies and equipment that conserve water and electricity. As a tenant in an LEED-certified building, you can expect to use 25 percent less energy, according to studies, and you can also expect lower water bills and reduced heating and cooling costs. One study found that the annual cost for utilities in green buildings was $675.26 cheaper per employee.
2. A Greener Brand
Studies have shown that when given the choice between two companies that are otherwise equal, consumer and B2B customers are more likely to choose the company that has an established a sustainability policy. Leasing space in an LEED-certified company is something that you can promote to show that your company is Eco-conscious. This can be a major differentiator between you and your competitors.
3. Support for Sustainability Initiatives
Many companies today are greening their corporate culture through green initiatives to satisfy stockholders and simply do what’s best for the planet. A move to a green LEED-certified office space can bolster these types of sustainability initiatives and bolster your efforts.
4. Improved Productivity
Green buildings help to boost employee morale, and that has been proven to impact productivity. One study found that employees in bank branches situated in green buildings were more productive than those in other non-green branches. Another study found that employees in bright office spaces with more windows and clear views performed 10 to 25 percent better on memory recall and brain function tests.
5. Fewer Sick Days and Lower Turnover
Green buildings aren’t just healthier for the planet; they’re also better for the health of employees. Improved air quality within LEED-certified buildings has been linked to improved health in employees. Studies have found that employee retention rates in green buildings are significantly higher due to improved employee morale.
6. A Better Position in the Community
Typically, local communities and cities are involved in or at least interested in promoting green commercial development. Leasing green office space can send a positive message to the community where your business operates, casting you in a favorable light with local lawmakers and neighboring businesses. These relationships can be invaluable as your business grows and develops.
When you consider these benefits, it becomes clear that green commercial real estate isn’t just good for the planet; it’s also a boon to businesses who choose to lease in these eco-friendly, sustainable buildings. While rents are often higher in LEED-certified buildings, the benefits often outweigh the increased costs.
A guest post courtesy of REoptimizer
REoptimizer® was founded on the principle that lease administration shouldn’t be complicated. We help minimize occupancy costs and increase the ROI on owned and leased properties. Visit their Blog.