Green Buildings Net Higher Profits, Group Says

June 27, 2011

Green commercial buildings are more profitable, nabbing higher rates, boasting higher occupancies, and attracting more investors, according to Capital Markets Partnership, a nonprofit coalition of investment banks, investors, and governments.

As such, CMG plans to jump-start a secondary market to buy and sell green building securities for all types of buildings, Forbes reports. The group has created underwriting standards that have been tested by some of the biggest banks.

“Green buildings are complicated, and if you don’t define standards, you could devalue collateral” says Mike Italiano, CEO of Capital Markets Partnership and a founder the U.S. Green Building Council. “And coming off the largest devaluation of collateral in history, we need to avoid that."

Italiano maintains “there’s a 20-year business model here which has been calculated to create a trillion dollar economic stimulus, 8 million new jobs, and $400 billion in new wages.”

President Obama also is recently promoting the value of green building through the Better Buildings Initiative. The initiative, which offers tax incentives, aims to make existing commercial and multifamily buildings more energy efficient.

Source: “Green Building Financing Offers More Profits, Fewer Risks,”Forbes (June 14, 2011)

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