How Green Construction Can Be Beneficial To Commercial Real Estate

Posted by on Jun 2, 2016 in Blog - Commercial Investment Properties | 0 comments

How Green Construction Can Be Beneficial To Commercial Real Estate

In Florida, finding ways to improve commercial real estate is the edge you need to secure renters in long-term leases that benefit both of you. While certain angles were popular in the past, the new way to make your commercial real estate hot on the Florida market is with green construction and improvements. Once you have a better understanding of how green construction connects with potential commercial real estate renters, you will see that the benefits go both ways.

Building green from the ground up makes sense with tax incentives

No one likes to pay more taxes than necessary, and now is one of the best times to cash in on government rebates or tax breaks. Due to a push to fulfill global warming initiatives that the current presidency agreed to, there are a variety of incentives for homeowners and builders that choose greener materials, techniques, and other pertinent machinery. HVAC units and other electric appliances can be eligible for Energy Star rebates from the federal government. Depending on your local community, you could be eligible for other programs that pertain to building a commercial property in Florida for the green real estate market such as storm water collecting programs, constructing a green roof, or building a parking lot in a way that does not add to the “heat island” effect.

Fulfilling environmentally-friendly corporate mission statements

By and large, by providing real estate that has green construction, you have your foot in the door with companies that have environmental-consciousness as the core of their business. Interestingly, this can extend beyond food businesses and go into retail markets such as clothing. In order to commit to a long-term lease with your property, they may ask for certain types of green construction certification. Thankfully, maintaining a green image for companies is now much easier due to the LEED certification process.

Luring renters with hard-to-find LEED certifications

In the past, there were some standards for green construction, but the new LEED certification program definitely refines those boundaries. Now, when a company has green requirements, they will often ask for certain types of LEED certification instead of a list of specifics they need to fulfill their environmentally friendly mission statements. This helps out real estate investors significantly because it gives them standards to work with concerning renters and construction project managers. On top of this, there are different levels of LEED certifications that can help you adjust the amount of rent you would like to charge for the commercial property. For instance, silver and gold LEED certification for buildings constructed with a green image will not be as highly-sophisticated as buildings that fulfill the platinum LEED certification requirements; and therefore they will be properties in demand.

Avoid future renovations by building green now

It is inevitable that green buildings will become the norm and eventually they will become the rule. As human beings continue to grow in number, even the slightest toll on the earth will need to be reduced. For this reason, as time goes on, it will be expected for commercial real estate investors to make improvements or major renovations to fulfill the green permit requirements of the future. If America models their ideals about saving the planet after Japan or Europe, requiring green renovations may happen sooner than expected. This is especially true due to the progress of the United Nations’ global focus on reducing energy use over the next 10 years. In other words, why renovate later when grants and rebates are offered to make these green choices with commercial construction now?

Selling a commercial lease with one secret green benefit

There are many good arguments for building green commercial real estate, but any design should ultimately help you make money. In real estate, obtaining the longest lease possible will always help your profit margins improve. For this reason, if you have a secret silver bullet, you will find that renters are willing to sign on the dotted line for the long-term. In the case of green building, what you will want to tell your potential renters is that they will be saving a significant amount of money on utilities due to the green appliances you install, the solar panels on the roof, and the unique design that keeps utilities from flying out the door every time a customer steps inside. For example, there are commercial HVAC units that run up to 30-percent more efficiently than models made five years ago. This means the potential business can expect to spend up to 30-percent less on their utility bills by renting your commercial real estate with green construction.

Jessica Kane is a professional blogger who writes for Econoheat., the world’s #1 leading waste oil boiler manufacturer.

 

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