Green Building RetroFitting Makes Good Dollar Sense

Implications: For builders looking for a smooth landing spot amid today's softening market for new construction, it makes good dollar sense to examine the  green market opportunities available on existing office and commercial space.  The LEED (Leadership in Energy and Environmental Design) rating is spreading among commercial construction projects throughout the State of Florida.  This green fever is catching on and for some very sound reasons.

Analysis: There are several reasons why an existing building should examine the opportunity of going green.  Retrofitting will and does reduce energy consumption,including utilities and water.  Making sure that a building is working efficiently benefits both employers and employees.  It reduces the negative impact on all occupants;especially work environment related illnesses or "sick building" syndrome.  As we all know,healthier employees are happier and more productive employees.  Industrial psychologists have known for decades that even the statement by an employer to his or her workforce that changes to improve the work environment are being considered results in greater production.  The LEED certification program offers various levels of compliance including certified,silver,gold or platinum. The designations are conferred by the US Green Building Council and the labeling of a commercial office or professional building as LEED certified has created a new value-added marketability for the leasing agent.  Simply put,LEED certified buildings are attracting greater numbers of tenants.  Employers taking the lead in this effort have,to date.been primarily public educational and public utilities such as the University of Florida and the Jacksonville Electric Authority.  However,the trend is catching on as questions regarding the costs associated with retrofitting are understood.  According to the USGBC,building owners can expect at least a 5% increase in new construction costs to achieve the LEED certification while existing buildings could face up to 10% for retrofitting.  But it is really all about return on the investment.   On that point the USGBC points out that the average ROI is 20% over the building's lifetime.

Makes sense to me.  Actually,it makes green sense.