Building owners want full occupancy of their buildings. Commercial tenants want spaces that are run efficiently and won't negatively impact their bottom lines. How can sustainable design help with that?
Well, to start, sustainable design is increasingly attractive to companies who are adopting sustainable principles as part of their corporate ethos (and in greater numbers each year). These companies are then using sustainability as a marketing tool, and leasing space in a sustainable building shows that they are practicing what they preach.
Beyond the marketing aspect, sustainability will positively impact a tenant's bottom line. Sustainable buildings, by definition, are more energy efficient thereby lowering operating costs for not just the base-building systems, but also for their individual fit-outs. The U.S. Green Building Council (USGBC) reports that sustainable building owners can expect to see a drop in operating costs by 13.6% for new construction, and 8.5% for existing buildings.
One last sneaky reason that corporations love sustainable buildings: they improve employee attendance, thus driving productivity. A National Institute of Health study showed that green office buildings reduced absenteeism, and have a generally positive affect on public health. Now that's nothing to sneeze at.
And for building owners, the USGBC mentions that ROI improves by 19.2% for existing buildings that used sustainable guidelines for renovation. Given the huge existing building stock in New York City, for many building owners, going green just makes good financial sense.
In addition to the direct financial benefits, a wide range of incentives are available to both building owners and tenants for sustainable practices, all of which have major impact on the bottom line. At the New York Grant Company, we've helped a wide range of commercial tenants and owners receive benefits for the installation of energy efficient equipment, pursuing LEED certification, achieving Energy Star status, and reducing peak load demand, among other activities.
The National Resources Defense Council reports that sustainable buildings have occupancy rates of up to 20% above average, for both residential and commercial properties. Additionally, for building owners, going green can mean that you can command rents of up to 10% above market average. Between the positive impact sustainability can have on your building, and the direction that New York City's local laws are moving in, going green as soon as possible just makes sense.
Virginia Watson is the senior business strategist for the New York Grant Co., New York, N.Y. Tags: