29 Oct '14, 5pm

Report: Green Buildings Market Grows to $260 Billion; Driven by Higher Rents, Values

Construction of green buildings rose to 325 million m2 of new floor space in 2013, representing a $260 billion market, according to Lux Research, with growth driven by economic benefits rather than environmental motivations. Growth has exceeded expectations as green construction marches toward a significant share of the mainstream market. In the United States, for example, green buildings command an estimated 20 percent of new construction. “Green buildings are driven not by utility savings, but by upticks in rental income or resale value,” said Alex Herceg, Lux Research analyst and the lead author of the report titled, “Cash Is King: Assessing the Financial Performance of Green Buildings.” “Those factors, along with government incentives, can make the financial case for green buildings, delivering predictable internal rates of return (IRRs) north of 5 percent,” he added. ...

Full article: http://www.edcmag.com/articles/95966-report-green-buildin...

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