Construction Costs Deter Green Development

Of those surveyed, only 12% said green construction would be very important, although 48% said it would be somewhat important. Of the remainder polled, 18% remained neutral on the issue, 13% said it was somewhat unimportant, 7% said very unimportant and 2% remained uncertain.

"The fact that the survey reveals such a substantial level of reluctance to embrace green construction is surprising," says attorney Barry Ross, a partner in Bryan Cave's Real Estate Group. "Previously viewed as prohibitively expensive by the real estate community, green construction is not universally gaining ground because the true cost-effectiveness of green construction is still a matter of debate."

Beyond continued reluctance to invest in green, the survey found that the Southwest part of the country is the most prominent area for new development project. While only 1% or respondents are based in the Southwest, more than 20% plan to invest in the area. The Northeast will be the most popular area to invest in, with 33% of respondents opting to invest here. 16% plan to invest along the Pacific Coast while 10% will do so in the Southeast.

Only 1% of respondents said real estate is currently being undervalued in the US, while 58% said it is overvalued and 37% believed it is fairly priced. These numbers, are almost identical to the 2006 findings, according to company executives. And despite the majority of respondents believing the market is overpriced, 48% said the market will remain the same over the next 12 months. 32% think it will weaken and 17% said it will strengthen.

Beyond the borders, 55% of those surveyed said they plan to invest outside the US in the next year; while 38% are highly likely to do so and 17% are somewhat likely. Although those highly likely went down from last year's findings, in which 44% of respondents said they were highly likely to invest abroad, according to company officials. Canada, England and Mexico ranked as the most sought after areas for investment.

Bryan Cave is an international law firm with more than 800 lawyers. Its survey contained 347 responses from executives in a variety of real estate related companies across the country.