Going “Green” is one the fastest growing trends in America! Green cars, green houses, green energy are all booming in demand and feasibility, and that goes for Commercial Real Estate as well! Not only are “Green” properties socially and ecologically conscious and responsible, they are also a huge source of untapped potential and opportunities in real estate!
Green Commercial Real Estate has real advantages over traditional properties such as:
Fast-Tracked entitlement & approval processes
Many cities and jurisdictions will give developers of green properties quicker approval for permits reduced feed for permits, and even access to land for development that otherwise would be deemed untouchable for environmental reasons.
There are numerous local, state, & federal tax incentives and programs that can provide an investor huge advantages for going green. One such incentive is the federal Energy Efficient Builder Tax Credit that can help offset the cost of “Green” upgrades.
While there is often an upfront cost when converting a traditional building to a more environmentally-friendly property, these upfront fees are offset in many cases by the increased efficiency of the day-to-day operations.
Market Differentiation/Competitive Advantage
There is a prestige and sense of “desirability” that goes along with Green properties. Market research indicates that Apartment communities who are able to promote features such as lower utility costs and better indoor air quality are seeing easier lease closings as well as higher occupancy rates and profitability. Studies have reported that renters are inclined to even pay additional rent for green apartment units.
The competitive advantage of being green sets you far apart from the traditional properties that are competing with you for tenants. In fact, developers and owners associated with green properties can take advantage of the media coverage and publicity that stem from this interest to generate increased demand for their properties.
The fact is that strategies for developing “Green” properties or converting existing properties to “Green” properties are the wave of the future! If you learn how to get in the game now, you’ll be far ahead of the curve and the competition!