I know Green Building Certification is not a strange word to us. But, it is very important for you need to know about it. One significant area where sustainability practices have taken center stage is the construction and real estate industry. As a result, green building certification has emerged as a vital consideration. Especially, for investors looking to make informed decisions and secure long-term success in the market.
Green Certified Building
What is Green Building Certification?
Mark Simon (MArch, ’72), FAIA, Partner, Centerbrook Architects in Centerbrook, Connecticut, says,
“A green building certification verifies that a building has met environmental, energy, human health, and other standards in its design, construction, and performance”.
The green building certification pays attention to all elements of sustainability from air quality, lighting and light pollution, energy, acoustics and noise pollution, transportation, materials, site management, etc. Green building certification begin even before designing starts.
Green Building Certifications
We have various green building certifications and the most popular are the:
The LEED (Leadership in Energy and Environmental Design) certification is widely recognized worldwide as the most prevalent certification. It encompasses a comprehensive assessment of sustainability factors, including energy efficiency, air quality, lighting, noise pollution, transportation, materials, and site management. The certification emphasizes the integration of all these elements to create harmonious functioning, akin to a well-coordinated machine.
LEED certification offers four levels: certified, silver, gold, and platinum. The building projects go through a verification and review process by GBCI and are awarded points that correspond to a level of LEED certification. The levels are Certified (40-49 points), Silver (50-59 points), Gold (60-79 points), and Platinum (80+ points). Each level imposes progressively stricter requirements, which may entail higher initial costs but yield substantial long-term environmental and financial advantages.
On the other hand, the WELL Building certification focuses on enhancing human health. Its standards promote ways in which the physical environment can contribute to the well-being of building occupants, encompassing aspects such as physical fitness, mental and emotional health, nutrition, sleep patterns, community engagement, cognitive stimulation, and emotional well-being.
The BREEAM certification has proven instrumental in enhancing the performance of assets at every phase. It ranges from design and construction to utilization and refurbishment. Numerous buildings worldwide have registered for BREEAM certification, as it offers a comprehensive approach to attain goals related to environmental, social, and governance (ESG) factors, health, and net-zero objectives.
EDGE is a certification system for environmentally-friendly buildings that aims to enhance their efficiency in resource utilization. It enables developers and builders to promptly determine the most economical approaches for decreasing energy consumption, water consumption and embodied energy in materials. GBCI oversees the administration of EDGE certification across more than 160 countries worldwide.
Benefits of Green Building Certification for Investors
Recently, there has been a remarkable shift in the real estate market, with investors increasingly recognizing the value of sustainability. Green building practices, once seen as a niche concept, have now become a mainstream trend. One of the key indicators of a building’s sustainability and environmental performance is its green building certification. In this section, we will explore the numerous benefits that green building certification offers to investors. This ranges from financial advantages to risk mitigation and market competitiveness.
- Enhanced Property Value: Investing in green building certification can significantly enhance the value of a property. Research consistently demonstrates that certified green buildings command higher rental rates and sale prices compared to conventional buildings. This is because these buildings have sustainable features that make them distinct from conventional buildings. Sustainable features such as energy-efficient systems, water-saving fixtures, and improved indoor air quality not only reduce operational costs but also attract environmentally conscious tenants and buyers who are willing to pay a premium for sustainable spaces.
- Cost Savings and Increased ROI: Green building certifications promote energy and resource efficiency, resulting in substantial cost savings for investors. Certified buildings employ advanced technologies and design strategies that minimize energy consumption, waste generation, and water usage. These sustainable practices translate into reduced utility bills, lower maintenance expenses, and prolonged asset lifespan. Ultimately, investors can achieve higher returns on investment (ROI) through reduced operating costs and improved long-term asset value.
- Access to Financial Incentives: Governments and financial institutions are increasingly recognizing the importance of sustainability and offering various incentives to encourage green building investments. These incentives may include tax credits, grants, rebates, and low-interest loans. Green building certification can unlock access to these financial benefits, providing investors with additional resources to offset upfront costs or fund further sustainable improvements. Leveraging these incentives enhances the financial viability of green projects and strengthens the attractiveness of investments.
- Risk Mitigation and Future-Proofing: Investors face growing risks associated with climate change, volatile energy prices, and stringent environmental regulations. Green building certification serves as a risk management tool, as certified buildings are designed to be resilient and adapt to changing environmental conditions. They prioritize energy efficiency, incorporate renewable energy sources, and implement sustainable water management practices. By investing in certified buildings, investors can future-proof their portfolios, reduce exposure to regulatory compliance risks, and enhance long-term asset stability.
- Market Competitiveness and Tenant Demand: Sustainable practices have become a fundamental expectation among tenants and occupants. Green building certification provides investors with a distinct competitive advantage in the market. Certified buildings demonstrate a commitment to sustainability, which appeals to environmentally conscious tenants, forward-thinking corporations, and socially responsible investors. By meeting these expectations, investors can attract high-quality tenants, reduce vacancy rates, and maintain stable rental income streams.
Green Building Certification by Litedares Consult Limited
Green building certification offers a multitude of benefits to investors, ranging from financial advantages to risk mitigation and market competitiveness. By embracing sustainable practices, investors can enhance property values, reduce operating costs, access financial incentives, mitigate risks, and attract environmentally conscious tenants. Moreover, with the growing emphasis on sustainability, certified buildings enjoy a significant market advantage. And also contribute to a more sustainable future. Investing in green building certification is only a responsible choice. It is also a profitable path toward a sustainable and resilient real estate portfolio.
With Litedares Consult Limited, you’re not just getting a green consulting company; you’re partnering with a company that has hands-on experience in green construction. Their comprehensive understanding of sustainable design principles, coupled with their expertise in construction, ensures a seamless and efficient process from concept to completion.
Don’t miss out on the transformative power of green building certification. Let Litedares Consult be your trusted advisor and partner as you embark on your sustainable journey. Contact Litedares Consult Limited today to schedule a consultation and take the first step towards a greener, more prosperous future. Together, we can build a sustainable legacy for generations to come.
