RICS survey reveals improving energy performance in US properties is worth the investment
Green buildings attract 3% higher rental premiums than non-green buildings of the same type, size and location according to research published by RICS.
RICS looked at the rental and selling premiums commanded by buildings with high energy performance ratings in the US. Energy-efficient buildings attracted a 3% higher rental premium per square foot. This increased to 6% when factors such as rental concessions spread over the life of the lease were taken into account.
The research also showed green buildings sold for 16% more than non-green buildings, an average increase in capital value of $5.5m. It found the premium applied to buildings that had been awarded the government backed Energy Star rating but couldn’t find any evidence that buildings with a high LEED rating, an alternative rating system, attracted a rental premium. RICS said the research was a valuable first step in proving that improving the energy performance of buildings was economically worthwhile.