Green Business: Green Building Renovations could be $400 Billion Market
Green Renovations could be the largest market to get into in the next coming years. A new report released by Pike Research shows that a $400 Billion potential market exists for green retrofitters. A large part of that is being pushed by the Economic Recovery and Investment Act, but even in the private sector, companies are looking to cut costs and become more green over the long run.
From making your rental property greener, to cutting your energy costs, green renovators should have their hands full in the coming years. From EnvironmentalLeader.com:
The market researcher says the total U.S. commercial building market, with 70-billion square-feet of space, delivers one of the largest opportunities for energy savings, reduction of carbon emissions and increased property values.
While direct energy savings can be significant with green retrofits, the study, “Energy Efficiency Retrofits for Commercial and Public Buildings”, indicates that most major projects will not be driven by cost savings, but instead will be initiated to meet broader policy and business objectives such as lower carbon footprints, higher employee productivity, and higher property values.
Backing these findings, a study released last year by The Global Facility Management Association, finds that ninety-two percent of survey respondents to the Green Practices Study say that they are working to make their facilities more sustainable. In addition, 67 percent say their customers are “forcing them” to make sustainable changes, while forty-six percent say the government is forcing the change.
Another recent study shows that commercial building owners can reap higher rental premiums for green buildings. The study, conducted by the Henley University of Reading in the U.K., shows that certified buildings provide a rental premium and that the more highly rated that buildings are, the higher the rent. Based on a sample of transaction prices for 292 Energy Star and 30 LEED-certified buildings, price premiums were 10 percent and 31 percent, respectively.
Even in the event that the estimation is a bit high, even a $200 Billion Market is something to look forward to in todays economy.
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