Twitter Facebook RSS FEEDS

Greener buildings attract higher premiums in USA

Tuesday, 31 March 2009 9:52 AM

Buildings in the US with a high energy star rating are receiving higher rental premiums than non-green buildings, according to research released today by the Royal Institution of Chartered Surveyors (Rics).

The research, 'Doing Well by Doing Good?', provides the first evidence on the economic value of the certification of 'green buildings' in the commercial sector, and concludes there is a premium of three per cent for the green building rents.

The Rics research also found when looking at effective rents, those being the true rent of a property considering rental concessions and spread over the life of the lease, the premium is above six per cent.

Simon Rubinsohn, Rics chief economist, said: "This piece of research is an important first step in building an evidence base on the topic of the value of 'green' buildings.

"Previously with only anecdotal evidence available on which to base decisions surrounding development of energy efficient buildings, it is understandable that the uptake of some measures has been frustratingly slow.

"With more comprehensive evidence based research, such as this paper, the economic argument for having an energy efficient building will be strong.

"Any businesses wishing to maximise profits will have to start looking at increasing the energy efficiency of the buildings in order to remain competitive. By proving that green buildings are economically beneficial due to the savings they can make and the higher rental yields they attract, non-green buildings will eventually become an outdated model."

The researchers were also able to look at the impact on the selling prices of green buildings, with the premium in the order of 16 per cent. Rics said this implies upgrading to the average non-green building to a green one would increase its capital value by some $5.5 million.

The results suggest tenants and investors at this point are willing to pay more for an energy-efficient building, but not for buildings which are 'sustainable' in a broader sense.

Related stories

New consumer sentiment index says expectations of house price growth over next 12 months at highest level for over a year. Image: Thinkstock

House prices fall again but expectations higher

New consumer sentiment index says expectations of house price growth over next 12 months at highest level for over a year.

Period property

Consider the needs of old buildings, experts warn

Experts including Kevin McCloud have written to the Government urging them to consider the needs of old buildings in the Green Deal.
AA Insurance report more theft claims over the last year.

Home insurance premiums reach new highs

Survey by AA Insurance shows 11 per cent average rise in cost of buildings, contents and combined policies in 2011.

 Aerial view of English town

59% want government to make homes greener

As the Energy Bill is debated today, research shows that more than half of Brits want energy efficiency to be more easily achievable.
Terraced properties

Home buildings insurance hits record high

The cost of an average buildings insurance policy rose by more than ten per cent last year to its highest-ever level.

 The cost of buildings cover rose 14.3 per cent in the last year according to the AA British Premium Index

Buildings insurance costs soar

Harsh winters and severe weather events drive up premiums to record high.
House prices fell by a substantial 8.7 per cent in Northern Ireland.

House prices end 2011 marginally higher

Prices rise one per cent, says Nationwide, and market stagnation set to continue next year.

AboutProperty.co.uk

Are school catchment area property premiums worth it?

Spending more on a house within the catchment area of a good school may be a sound investment for many parents.
House prices in market towns have risen by £1,000 a month on average over the last decade, say Lloyds TSB. Image: Thinkstock

Market towns enjoy £1,000 a month house price rise

Over the last decade house prices in market towns have risen by £1,000 a month on average say Lloyds TSB.

 Home insurance

Monthly home insurance premiums cost you more

Shop around to avoid paying up to 12 per cent more for home insurance, says Moneysupermarket.com.

Search property

Headlines

Directory

Alaris

Alaris Logo
Alaris specialise in quality Bathrooms and Kitchens along with many other unique products for your home. The range of kitchens, kitchen worktops and bathrooms is extensive and the highest quality so you are sure to find what you want. New bathroom furniture, bathroom suites, taps, showers and cabinets are added regularly.

Bathrooms365

Bathrooms365 Logo
Bathroom365 supply all areas of your new bathroom - leading-edge designed bathroom suites, stylish bathroom taps and showers, all styles and forms of shower enclosures and a vast collection of bathroom furniture.

Beds Direct

Beds Direct Logo
Whether you've just moved into a property and need to furnish it or just fancy having something new to sleep on, Beds Direct offer you a wide array of beds to order online or via the telephone.

Fitmykitchen

Fitmykitchen Logo
Fitmykitchen are specialist suppliers of kitchen appliances, sink taps, waste bins and furniture. So whatever you want from kitchen sink taps to waste bins look no further than fitmykitchen, UK, the specialist suppliers of kitchen appliances, stainless steel sink taps, waste bins and kitchen furniture.

MyStampDuty

MyStampDuty Logo
We help people buying property all over the UK to minimise Stamp Duty Land Tax on residential and commercial property. If you are looking at purchasing a new home or business premises over £500,000, contact us today by completing the form on the right

Oak Furniture Land

Oak Furniture Land Logo
For hardwood furniture, including Solid Oak, Mango, Mahogany, Sheesham, Acacia, Ash and Birch, look no further than Oak Furniture Land.

Propertywide

Propertywide Logo
Propertywide.co.uk is Countrywide plc's dedicated property website. Created to provide online access to all our estate agency, lettings and property related services, Propertywide.co.uk has been designed with the consumer at heart.

The 21st Century Radiator Company

The 21st Century Radiator Company Logo
Welcome to 21st Century Radiator Company. We supply a stunning range of traditional reproduction high quality cast-iron radiators and cast-iron baths. All our cast-iron radiators and cast-iron baths are brand new, fully tested and guaranteed for ten years.

Rated People

Rated People Logo
Whatever type of home improvement or garden remodelling project you have, Rated People can help you to identify the right tradesmen for the job in a way that is quick, easy, convenient and, as it is based on real-life recommendations, trustworthy.

Residential Land

Residential Land Logo
If you are looking for short or long term rentals in Central London, Residential Land have a portfolio of over 1200 flats and houses in the best postcodes across the Capital.

Simply Bedrooms

Simply Bedrooms Logo
Simply Bedrooms, a part of Sleepwell Bedrooms Ltd, supplying quality beds, wardrobes, sliding door wardrobes and bedroom furniture at low prices and great service, London and Home Counties Specialists.

Door Handles UK

Door Handles UK Logo
Door Handles UK is the UK's largest online range of Door Handle accessories, Door Hinges, Locks and Latches and so much more and all at genuine internet prices. We have a wide range of Chrome, Brass and Glass Crystal Mortice door knobs in both traditional and contemporary designs, whatever your taste and budget you will find a design to suit.

Woodlands Furniture

Woodlands Furniture Logo
We are an established family business situated in rural Herefordshire specialising in beautiful handcrafted classic reproduction furniture. Our comprehensive ranges are readily available from stock.

Join our directory aboutproperty.co.uk

Twitter

Join the conversation at #aboutproperty

Directory articles

Why increasing amounts of people are opting for house shares

London is an expensive place to live, however, house shares offer you the opportunity to enjoy the hustle and bustle of the capital for a fraction of the price you would pay to live on your own, making them a cost-effective way forward.

Why sliding door wardrobes are the best choice for small spaces

When bedroom space is at a premium, you need to be creative with the furniture you invest in. In terms of the wardrobe, you may want to consider those with sliding doors, as they are the most practical in small bedrooms thanks to the doors.

The durability of mahogany furniture is ideal for the office

For office-based businesses it is vital to invest in high-quality furniture that is both practical and comfortable to use. While there are many products to choose from, the benefits on hand with items made from mahogany mean it is an option you should be certain to consider.