Do green buildings sell better than their counterparts?
Wednesday, November 26th, 2008At one of the Greenbuild session I attended last week, Andy Florance, CEO of CoStar, said the biggest lie in the construction world used to be “my building is under construction.” Now, he said, “that lie has been replaced by my building is LEED certified.”
That got me thinking about what the highest standard of green building is. Is is LEED platinum? Is it a living building? What about a building that is netzero energy? So I’ve posed the question to you in a new poll at right, and would love to hear what goal you think all buildings should be striving for, if they should be striving for any green goal at all. Or comment below and tell me what standard you think is the best.
But I digress, back to the topic line: do green buildings sell better than their counterparts? According to CoStar, that answer is yes.
CoStar did a study of the buildings in its entire U.S. database between the first quarter of 2006 and the first quarter of 2008, and based on that information, LEED buildings were 4 percent more occupied than their competitors, renting at $11.33 more per square foot and selling at $171 more per square foot, a 64 percent advantage. Both the occupancy rates and rental amounts climbed - from 4 to 6 percent and from an $11.33 to $18.58 advantage - if you count the past two quarters of this year.
But, Florance cautioned, that information is going to be really tough, if impossible, to measure in the future, thanks to the current state of the economy.
If you want more factual information, read my article in the DJC here that has loads more information on the topic. Or you can see a version of this study dated March here.



