Magazine article New Zealand Management

INTOUCH : Building Green Value

Magazine article New Zealand Management

INTOUCH : Building Green Value

Article excerpt

Green buildings cost roughly two percent more to build but they more than pay that back in terms of energy savings, tenancy rates and even worker productivity.

Property is one sector where emissions reductions represent a healthy value opportunity as various speakers at the recent Green Building Summit in Auckland pointed out. According to keynote speaker Canadian property developer Joe van Belleghan, the green building market is really taking off in North America as investors realise the economic benefits.

He is development manager for a $620 million sustainable community development in British Columbia. Dockside Green is a model for holistic, closed-loop design that functions as a total environmental system. It has its own renewable energy system and treats all its own sewerage on-site using the treated water to flush toilets and irrigate gardens.

And contrary to popular belief, says Belleghan, therea[euro]s no need for developers or investors to forfeit profitability to achieve sustainability a[euro]" a[euro]environmentally and socially conscious developeda[euro] actually make better business sense.

The same message came from AMP Capital research analyst Nick Edgerton who points out that green properties attract a rental premium and have lower vacancy rates. Energy efficiency has positive impacts on both market value and effective rent a[euro]" and rental values are increasing faster for energy- and water-efficient buildings.

Edgerton also highlights studies showing that green buildings improve productivity by six to 11 percent and that the difference between business as usual and a solution tuned to address productivity in the workplace could add almost A$250/m2/year of value to a tenant. …

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