5 Nov 2014

Hi Report: Green Buildings Market Grows to $260 Billion; Driven by Higher Rents, Values!.

Hi Report: Green Buildings Market Grows to $260 Billion; Driven by Higher Rents, Values!.


Construction of green buildings rose to 325 million m2 of new floor space in 2013, representing a $260 billion market, according to Lux Research, with growth driven by economic benefits rather than environmental motivations.

Growth has exceeded expectations as green construction marches toward a significant share of the mainstream market. In the United States, for example, green buildings command an estimated 20 percent of new construction.

“Green buildings are driven not by utility savings, but by upticks in rental income or resale value,” said Alex Herceg, Lux Research analyst and the lead author of the report titled, “Cash Is King: Assessing the Financial Performance of Green Buildings.”
“Those factors, along with government incentives, can make the financial case for green buildings, delivering predictable internal rates of return (IRRs) north of 5 percent,” he added.

Lux Research analysts studied utility savings, rental rates, resale value and government incentives in green buildings and their impact on IRRs.
Among their findings:

• Green certification fuels growth. Lux Research’s analysis found that buildings with LEED Gold certification outperform their baseline peers. For instance, higher rental income added $4.1 million in value to a model 80,000 ft2 commercial building in Los Angeles.

• IRRs get a boost from subsidies. Incentives like Germany's subsidized interest rates for energy-efficient homes, or government cash rebates in India, can lead to an IRR of 5 to 6 percent over 15 years.

• Energy efficiency codes offer market opportunity. While green building standards like LEED helped build market demand for green buildings, building energy efficiency codes such as ASHAE 90.1, IECC and ECBC India can create a much larger market opportunity. In Germany, Lux Research estimates that new floor space compliant with the EnEv 2009 code was 50 million m2, or about 36 percent of overall new construction, in 2013.


The report, titled “Cash Is King: Assessing the Financial Performance of Green Buildings,” is part of the Lux Research Efficient Building Systems Intelligence service.


No comments :

Post a Comment

Hi Translate Linguistic Hi Proverb Tool.

(Hi) - Visit The New Digital World.

(Hi) - Visit The New Digital World.
As It Is Explained, Dismantled & Incorporated.

Ambient Air Quality Monitoring / Continuous Emissions Monitoring / Process Control / Data Handling.

Ambient Air Quality Monitoring / Continuous Emissions Monitoring / Process Control / Data Handling.
"Gas Monitoring Solutions"

Hi Air Pollution Engineering!.

Hi Regulations, Pollution Engineering!.

Hi Wikipedia Search.

Search results

Hi Bloggers Contact Form.

Name

Email *

Message *

Hi ' Graduate School at the Centre for Alternative Technology!.

Hi ' Graduate School at the Centre for Alternative Technology!.
"MSc Renewable Energy and the Built Environment."