I get to sit in the editor's chair as we welcome Lexington Blood posting his debut entry here on comitini.com. Lex gives us some insight into why real estate development is going green. I had a customer ask to see only green buildings for the first time this week, a sign to me that consumer sentiment may be transforming right now. Better understanding of sustainable design will lead to greater demand, and change that's sustainable in the marketplace too. The benefits of green development are something that we'll be looking at on comitini.com even more so in the future. There is a lot to gain for everyone. Peter
will sustainable development mean more sustainable profitability too?
Fast forward to the year 2030.
Now picture yourself with a building in downtown New York City. It a beautiful mixed-use building with an A-list restaurant on the main floor, office space above and stylish luxury apartments. When you bought this property back in 2008, it was still considered a trophy, but not anymore. You’re in the cross-hairs of New York City’s environmental agencies, because your building is not energy efficient or environmentally friendly. In fact its exactly the opposite, it has high quality imported finishes and materials that are high in ‘off gases
’. It has incandescent light bulbs throughout the entire building, an energy wasting HVAC system, poor air quality because of out dated ventilation system, underrated insulation, and your building doesn’t have solar power or any other proactive carbon offsetting systems.
The writing is on the wall. If you don’t begin with a sustainable approach when developing, buying or selling any property, be it residential, retail, industrial or commercial, you will be facing costly liabilities. Because of high-energy costs, buildings are becoming increasingly expensive to operate. With this in mind, developers, owners, and property managers can benefit from the slightly higher initial cost to go green because future cost increases will be limited and tenants will be happier because of it. We’ve heard that green development makes sense socially and environmentally, but does it make sense economically?