What’s the Payback on Green Initiatives for Commercial Property Owners?

Sourced from National Real Estate Investor

Today’s property owners are increasingly getting the message that going green can bestow both environmental and economic advantages.

On the environmental front, a new report from the Urban Land Institute’s Greenprint Center for Building Performance shows that from 2016 to 2017, the nearly 8,000 global properties owned by Greenprint members reduced energy consumption by 3.3 percent, carbon emissions by 3.4 percent and water use by 2.9 percent.

Meanwhile, a new survey from the U.S. Green Building Council indicates that employees who work in LEED-certified buildings are happier, healthier and more productive than employees who work in conventional non-LEED buildings. Therefore, the thinking goes, a LEED-certified building could wield an economic edge, since it would be highly coveted by employees and, more importantly, by their rent-paying employers.

Annapolis, Md.-based Hannon Armstrong Sustainable Infrastructure, which bills itself as the first publicly-traded “green” REIT, has latched onto those dual values of going green. Since its IPO in 2013, the REIT has finalized about $5 billion in financing deals for sustainable infrastructure, such as solar and wind power projects, water conservation initiatives and HVAC upgrades at office buildings, hotels, apartment buildings and other properties.

One of Hannon Armstrong’s latest transactions was a $10.5 million, 25-year Commercial Property Assessed Clean Energy (C-PACE) financing for energy-efficiency and earthquake-proofing measures at a new Hyatt Centric hotel in Sacramento, Calif.

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