The Growing Business of Green
December 20, 2011
Pike Research estimates the market for bringing energy efficient to commercial buildings will increase to $100 billion by 2017.
Companies doing retrofits — as well as property managers — are promoting the cost savings and other benefits of energy efficient buildings. President Obama is making a renewed pitch for his green buildings initiative, with an additional $4 billion pledged for energy retrofits.
The government has been a leader in making its buildings green, using its long-time horizon to make the energy investments pay for themselves. However, the private sector will need to see a return on investment in the two-year time frame, not the six to 20 years the government will wait.
Even though increased energy efficiency can pay dividends in lower energy costs, it has yet to prove its value in rents and resale, according to Eric Bloom of Pike Research. He adds that while there is plenty of anecdotal evidence about the energy efficiency and desirability of green building, "there still isn't enough data to factor the added value of green into appraisal and lending processes."
There is a push to establish the value of green building. The Department of Energy and the Appraisal Foundation want energy performance to be considered and is training appraisers how to do it.
Source: "Going Green Could Be a $100 Billion Business by 2017," CNBC News (12/14/11)
(c) Copyright 2011 Information, Inc.
Updated: December 02, 2020