4 reasons green building makes more business sense than ever before

September 16, 2015

Keeping abreast of the latest green building practices provides a competitive advantage for those in the architecture field. According to Architect Magazine, commercial clients now prioritize architects capable of keeping up with the best industry practices and latest technological innovations available. Rising energy costs, growing calls for corporate social responsibility and the long-term ROI associated with green building are all major motivators for commercial clients to seek greener solutions when expanding or retrofitting their facilities. Green building projects, which were once overlooked as novelty installations, are quickly becoming part of the new status quo.

A key business benefit of sustainable construction is cost reduction, and the financial advantages of choosing greener technologies are considerable. For instance, facilities that are built to incorporate thermal energy storage to shave building peak load can save dramatically each year on cooling costs. However, budgetary improvements are just one of the many upgrades that green building can offer to a business.

1. Staying on the cutting edge means dabbling in green buildings
Interest in green building among corporations and their clients has risen to the point that keeping up with the latest trends in building design is near synonymous with thinking more sustainably. Several sources have pointed toward widespread adoption of green building strategies in commercial expansions and retrofits, reflecting how influential this movement has become on building practices across the country.

For example, data collected by the CBRE Group and Maastricht University in the Netherlands showed that over 40 percent of new square footage in commercial construction worldwide in 2014 incorporated green building. Likewise, the U.S. Green Building Council estimated that anywhere from 40 to 48 percent of this year's new nonresidential construction nationwide will be green. Even more growth in the green building industry is projected looking forward. The market for green building materials reveals some insight into the industry's growth as well. According to a BBC Research report, annual revenues for green materials nationwide will go up from $44 billion in 2014 to $69 billion by 2019. Collectively, the data suggests that it won't be long before going green becomes the competitive  status quo.

2. Sustainable environments encourage productivity
The advantages of green buildings go beyond the energy bill. A recent study performed by scientists at the Harvard T.H. Chan School of Public Health identified a long list of health benefits that go along with working in a green building as well. The researchers found that the higher standards of indoor cleanliness and air quality associated with green buildings go a long way toward limiting discomfort and distraction in the workplace. In addition, the study's researchers pointed out that "green building is also associated with higher productivity, lower employee turnover and a decrease in the length of open staff positions." These potential efficiency gains reflect just how extensive the payback can be for companies that choose to invest in green building during new construction.

3. Many international investors prefer green projects
Companies looking to expand or build new facilities overseas will likely find themselves becoming familiar with the ins and outs of green building. Both the investor market and leading lenders in nations across the globe have come to recognize the business benefits of green building and subsequently are seeking to invest in projects that are certified by third-party organizations like LEED, said The Huffington Post. In addition to reduced operating costs and acting as a brand differentiator, green buildings offer international corporations a way to show leadership in the field of governance and a means of attracting young, ecologically minded talent.

4. Green construction shown to strengthen regional economies
Savvy business strategists know the importance of investing in the company's surrounding community. After all, a stronger and more flexible local economy is one that also encourages stable business growth. An accelerated green building industry helped to generate millions of additional jobs between 2012 and 2014, according to a McGraw-HIll construction study. Local architects, engineers and contractors with expertise in the surrounding community's green building codes are now in higher demand than ever before as the industry heads in a more sustainable direction.