Increased property value. As a superior product, a green building can yield increased value to the owner. For example, Green Value: Green Buildings, Growing Assets, a study of 11 green buildings in the U.S. and Canada, found that--in addition to the payback efficiency measures provide over time--a "green" designation can also increase a building's market value as assessed by appraisers and investors.
Increased return on investment. Up-front investments in green designs and technology can yield financial paybacks over the life of the building in the form of lower utility bills and reduced operating and maintenance costs. For example, a 2003 report, The Costs and Financial Benefits of Green Buildings, prepared for California’s Sustainable Building Taskforce, analyzed both first costs and 20 year operational costs and savings of 30 completed LEED projects. On average the additional first cost was 2%, or $3.00-$5.00/square foot. However, the total 20 year net present value of improvements attributed to energy, emissions, water, waste and commissioning is $11.98.
Enhanced occupant health and well-being. Access to daylight and fresh air and creating an environment free of toxins and irritants helps protect building occupant health and enhances well-being. This too can result in a financial benefit: the same study referenced above reports a benefit to health and productivity that dwarfs even the reduced resource use savings. Adding the value of improved tenant health and productivity, the 20 year net present value for LEED Certified and Silver buildings is $48.87 and for Gold and Platinum $67.31.
Boost occupant productivity. Numerous studies show the productivity benefits of fresh air and natural light in buildings, and conversely, the negative impact of poor indoor environmental quality. The Heschong-Mahone Group found that the quality of light and air in a workspace can affect worker productivity by up to 20% either positively or negatively.
Increased sales and leasing potential: Green building features can help close the deal. For example, the Brewery Blocks in Portland, OR leased out more quickly and at an enhanced rate per square foot than comparable space in the Portland market, even as a depressed economy was resulting in a net loss of leased space across the city. (See the Brewery Blocks case study for more.)
