Green Buildings, Good for Business

Monday, October 31, 2005

TORONTO, Oct. 28 /CNW/ - A new Canadian study of green buildings reveals a clear link between the market value of real estate and its environmental friendliness.

The study, Green Value, co-sponsored by the Real Property Association of Canada (RealPac) in conjunction with nine government and private sector organisations in Canada and the United Kingdom, finds that green buildings can:

• Earn higher rents and prices;
• Attract tenants and buyers more quickly;
• Cut tenant turnover;
• Cost less to operate and maintain; and
• Benefit occupiers.

The report highlights how green buildings could make money if there was greater recognition of the extra staff productivity that green features or strategies bring. But it also recognises that there needs to be more green buildings if their true value and potential are to be maximised.

Michael Brooks, Executive Director of the Real Property Association of Canada (RealPac), commented "we will see increased tenant demand for green buildings in Canada, both as a result of Kyoto compliance concerns, and as pedigree that buildings will increasingly need to have". Canadian governments are seen as a key early mover into green buildings, and Fortune 500 type companies are also likely to be early adopters.

The case studies involved a qualitative assessment of the impact on the value of green buildings in Canada, the USA, and the UK, and were selected to provide a range of locations, building types and uses. Interviews were conducted with building developers, owners and occupants focussing on value benefits of their green buildings compared with comparable conventional buildings and translating the benefits in terms of valuation.

Green buildings can:

• Attract grants, subsidies and other inducements to do with environmental stewardship, increasing energy efficiency and lessening greenhouse gas emissions;
• Improve business productivity for occupants, affecting churn, renewals, inducements and fitting out costs amongst others; and
• Benefit occupants more than the underlying asset cost or value; resulting from business productivity benefits.
• The Green Value Executive Summary, Report, and Case Studies are available as free downloads from the RealPac website at www.realpac.ca.

Real Property Association of Canada (RealPac)

RealPac is Canada's senior national real property association whose mission is to bring together Canada's real property investment leaders to collectively influence public policy, to educate government and the public, and to ensure stable and beneficial real estate capital and property markets in Canada. RealPac members currently own in excess of CDN $100 Billion in real estate assets located in the major centres across Canada and include real estate investment trusts, publicly traded and large private companies, banks, brokerages, crown corporations, investment dealers, life companies, and pension funds. Visit RealPac at www.realpac.ca

Related Link: www.realpac.ca