GREEN BUILDINGS BOOMING

Driven by Higher Rents and Values, Green Buildings Market Grows to $260 Billion; 325 million m2 of new green buildings floor space was built in 2013 as internal rates of return reached a steady 5% or more…

October 29, 2014 (Lux Research)

“Construction of green buildings rose to 325 million m2 of new floor space in 2013, representing a $260 billion market…driven by economic benefits rather than environmental motivations…In the United States, for example, green buildings command an estimated 20% of new construction [according to Cash Is King: Assessing the Financial Performance of Green Buildings from Lux Research]…[B]uildings with LEED Gold certification outperform their baseline peers…Incentives like Germany's subsidized interest rates for energy-efficient homes, or government cash rebates in India, can lead to an IRR of 5% to 6% over 15 years…[B]uilding energy efficiency codes such as ASHAE 90.1, IECC and ECBC India can create a much larger market opportunity [than green building standards like LEED]. In Germany, Lux Research estimates that new floor space compliant with the EnEv 2009 code was 50 million m2, or about 36% of overall new construction, in 2013…” click here for more

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