ROI: Increasing asset values

group of building assets

Owners and developers are interested in the financial upsides to high-performance design. One key measure is “asset value.” Asset value is commonly perceived as market value, meaning what a property would sell for based on the local real estate market and specific features of a property (WGBC 2013). Both green labeling and operational cost reductions boost a property’s marketability and asset value.

Literature review completed by University of Washington’s Integrated Design Lab for AIA in 2020.

Green Labeling

Green labels and certifications (e.g., LEED, WELL, Living Building Challenge) can improve a property’s marketability and desirability. According to European researchers, the economic advantages of green buildings include their “longer economic lives, lower marketability risk, and lower risk of technical and regulatory obsolescence” (Reichardt 2012).

Key green labeling talking points:

  • LEED certification has several levels, from certified to platinum. There is “an average 3% increase in rent for each increase in certification level” (WGBC 2013).
  • Green buildings can sell for 16% more than conventional buildings (Eichholtz 2010).
  • LEED buildings have a 4.1% higher occupancy rate than noncertified buildings, and Energy Star buildings have a 3.6% higher occupancy rate (Kaplow 2011).

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group of building assets