A recent Canadian study gives a boost to green building. The study highlights case studies in the U.S. and Canada that provide further evidence that it does pay to build green.
Here are a few success stories from the executive summary:
Pennsylvania Power and Light noted a conversion’s electricity savings amounted to a payback in 4.1 years with a 24% return on investment. However benefits from lower absenteeism and higher productivity meant a simple payback of just 69 days, a 540% return on investment.
At Wal-Marts Lawrence, Kansas, Eco-Mart skylights were installed to reduce lighting costs. Employees asked to be moved to the daylit part because sales were higher there.
Reno Post Office was renovated. The improved productivity gains paid for the entire renovation of $500,000 in less than a year. The annual savings in energy use and maintenance were a ‘free bonus’.
Hyde Tools found that new lighting enabled workers to improve quality control by the equivalent of $25,000 a year. Every dollar saved was thus worth $10 in improved sales: the retrofit was worth $250,000 extra sales annually.
CABE’s The Value of Good Design quotes a 21% improvement in hospital discharge rate from a hospital renovation, effectively reducing total costs by 21%. It improved care quality, speed,satisfaction and had spin-off benefits of lower drug use, reduced return visits and other factors.
In addition to debunking some of green building myths (ie. green buildings are more expensive, the pay back isn’t fast enough), the report identifies the need for real estate valuers and financial developers to communicate the true benefits of green building better with buyers.
The study concludes that green buildings can achieve greater value than their conventional equivalents. But further, it found that the green building industry and others may be failing to get the message across that the main beneficiaries are occupants…
Instances were found of green features improving productivity, but neither owners, developers, appraisers, nor the green building sector, fully value or communicate this advantage. Both the real estate and green sectors would benefit from reviewing their focus and working more closely together.While the benefits to asset value are compelling, they are minor compared with the benefit to business. This benefit needs to be properly valued and communicated. Then all can benefit from building green.
Via Tree Hugger, Real Property Association of Canada.