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If you’ve considered hopping onto the green building design trend, but haven’t quite made the jump, we will enlighten you on three key benefits of moving your business toward a green land investing prototype.
JD Esajian explains that Sustainable business practices aren’t just good for the environment, they can also be good for the wallet. Here are three unique ways green buildings affect the real estate investment businesses in our world today.
1- Higher return for realty investors
As a true estate investor, you might want to think about investing more in green buildings. From a true estate investor’s point of view, a higher rate of return on investment is guaranteed when investing in green buildings. The explanation for that is the upper price premium added to green buildings compared to traditional properties. Green accreditation of land properties also contributes to higher percent by attracting more tenants, thus driving down vacancy rates, especially when the tenants are companies with reputable corporate social responsibilities.
Current asset investors, especially millennials, are more tuned in to the environmental risks related to conventional building methods. They will spend more on asset properties that are energy efficient and environmentally friendly.
2- Cost saving
The fundamental difference between conventional building and green building property investments is the cost savings. Investing in green building realty can have a better initial value. Thanks to the upper cost of green building materials and the green technologies followed within the process. But within the future, these costs become insignificant when put next with future cost reductions. The foremost important good thing about green building is that the energy efficiency, which is reflected within the direct costs of running the real estate property, increases within the earnings of the building.
By using green building technologies throughout the life cycle of the building, major cost savings will be achieved through the conservation of energy and water resources, also as a reduction within the operational and maintenance costs. Reducing the operating costs of a building or a true estate investment portfolio increases the web operating income, thus increasing the benefit from the important estate investment.
Using green building technologies like photovoltaic solar panels gives land investors the chance to sell unused energy produced back to power suppliers, generating more income from the building, and contributing to energy sustainability.
3– Social and environmental benefits
From a social perspective, green building’s effect on property investments will measure with societal benefits that realty investors enjoy like lower greenhouse emission emissions, less pollution, and better public health because of the green building technologies implemented. Subsequently, tenants and realty investors can enjoy higher living qualities through better ventilation, more natural light used, and the ability to manage the standard of the indoor environment. These factors make tenants more willing to pay higher rents.
From an environmental perspective, green building technologies contribute to a reduction in pollution. Because of the characteristics of a sustainable building followed throughout the life cycle of the building, CO2 emissions and other greenhouse gas emissions are reduced, resources like water are conserved, and therefore the depletion of building resources is reduced by using green building materials and green building technologies.
From an increased value of realty investment to reduce running costs of the property, green building is the way forward for the real estate investment business and at Gryn Bricks & Tech we offer you the best.