SEATTLE-Sustainable buildings are expected to generate stronger investment returns than traditionally managed properties, according to an ongoing study of a national office portfolio managed by CB Richard Ellis. The study found that owners of sustainably managed buildings anticipate a 4% higher return on investment than do owners of traditionally managed buildings, as well as 5% [more] increase in building value.

Roughly 79% of owners surveyed believe that sustainable properties perform well in attracting and retaining tenants, yielding a 5% increase in building occupancy and 1% increase in rental income, according to the study. The findings are part of the second phase of a multi-year study initiated in 2009 by CBRE and the University of San Diego’s Burnham-Moores Center for Real Estate. This year, CBRE also collaborated with McGraw-Hill Construction to expand and publish the survey.

The ongoing analysis measures green building benefits and resulting economic outcomes as a framework of investment criteria for retrofit activity. The study’s initial findings were made public recently at the USGBC's Greenbuild as part of McGraw-Hill’s the Business Benefits of Green Buildings: Building and Occupant Performance Driving Green Investment in Existing Commercial Buildings SmartMarket Report. A full update to the study’s 2009 report Do Green Buildings Make Dollars and Sense? is expected to be released later this year.

According to the study, tenants in sustainably managed buildings report increased productivity, satisfaction and health. Roughly 10% of tenant respondents have seen increased productivity, 94% of tenant managers registered higher employee satisfaction in green space and 83% of tenants believe their green space provides a healthier working environment.

The study defined a green building as those with LEED certification at any level or those that bear the EPA ENERGY STAR label. All of the ENERGY STAR buildings in the survey group had been awarded that label since 2008. Most of the buildings included in the research cohort had also adopted other sustainable practices like recycling, green cleaning and water conservation.

In the Seattle region, CBRE manages 2 million square feet of LEED office buildings, and oversees 10 million square feet of properties registered with ENERGY STAR on behalf of their clients.

Instant Insights /

Sustainable Buildings Generate Stronger Returns

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