Today Online 13 Nov 09;
PHOENIX - If you aren't convinced about global warming, here are some persuasive reasons to "green" your office building.
Not only do tenants in green buildings enjoy greater productivity, they also see fewer sick days taken by staff.
As for landlords, they benefit from lower vacancy rates and higher rentals, according to a landmark study conducted by the University of San Diego and CB Richard Ellis Group (CBRE).
The report Do Green Buildings Make Dollars and Sense?, released yesterday at a conference in Phoenix, Arizona, is the product of a year-long research effort and is the largest study of its kind to date.
Respondents in the study reported an average of 2.88 fewer sick days in their current green office as compared to their previous non-green office.
Some 55 per cent of respondents also indicated employee productivity had improved.
The study also showed green buildings have 3.5 per cent lower vacancy rates and enjoyed 13 per cent higher rental rates than the market.
"We have been seeking ways to make an empirical case for the economic benefits of sustainable practices, and the results of this study exceeded our expectations," said CBRE's national director of sustainability, Mr Dave Pogue.
The survey involved 154 buildings under CBRE's management, housing 3,000 tenants in 10 markets across the US.
Not only were the buildings certified energy efficient, most had adopted other sustainable practices like recycling and water conservation.
"We have now confirmed in this and other studies that green features and energy savings pays off," said Dr Norm Miller, academic director and professor at the University of San Diego's Burnham-Moores Center for Real Estate.
"Commercial real estate players have no choice but to learn how to be better in a sustainable way ... The economics of green will drive the market, not altruism or concern about global warming," said Dr Miller, adding that "green leases" would soon be the norm.
About 18 per cent of tenants, the survey showed, are willing to pay more for green space, and most believe healthy indoor environments boost staff retention (61 per cent) and client image (70 per cent).
