Going Green Is No Longer a Choice

Posted by on Sep 3, 2016 in Blog - Commercial Investment Properties | 0 comments

Going Green Is No Longer a Choice

Going Green Is No Longer a Choice

It can be referred to by a number of names these days, ‘going green’, ‘sustainable’, ‘eco-friendly’ and more but saving the environment and lowering utility bills is no longer just a buzzword. As a commercial real estate investor the only way you make money is by having your building occupied. When recruiting potential tenants they’re going to be interested in 3 things:

– Location
– Appearance/Condition of the Building
– Energy Efficiency of the Property

Commercial businesses especially are going to want to know how much per month they must budget just to keep the lights on and the place cooled. In Florida, an old raggedy air-conditioner can legitimately cost a company thousands of extra dollars a year in higher utility bills compared to an energy-efficient model. Lights that haven’t been upgraded, inferior plumbing fixtures, and heat absorbing building materials only increase the chance that the potential tenant will keep searching – regardless of how well they like the building.

Going Green For Tenants…And You

Having a sustainable building doesn’t just provide you with justification for placing an Earth bumper sticker on your car, it has legitimate benefits. Green buildings have proven to have a better internal health environment which in turn boosts worker’s cognitive ability making them more productive and safer. Customers are in a better mindset and the place is just generally more pleasant to be in – all while lowering the carbon footprint on the environment!

The big road block for building owners is cost as it does present a pretty significant short-term investment to upgrade appliances and materials. However, the long term provides operating procedures that use 25% less energy and cost 19% less. If you plan on being a commercial real estate investor for years to come, those are some pretty eye-opening savings that have a quick payback ratio. Plus, your building becomes more appealing to tenants and you can charge a higher rent because of the value-based renovations.

As a commercial real estate investor it’s easy to look solely at the bottom line (albeit important). Green building renovations may not be high on your priority list at the moment but they’re something that should be considered sooner rather than later. In fact, being a leader in the development and implementation of sustainable applications in buildings in your community could take your portfolio to the next level.

Positive public perception is the best advertising out there.

 

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