A new report entitled "Green Value" focused on the financial aspects of sustainable development and concludes that green buildings can have many benefits to property owners and occupants.

The report claims a 30 percent productivity increase over traditional buildings and returns on investment more than 20 times the savings on energy alone. The results suggest a benefit to occupants that can exceed real estate asset value. It also found superior rent, occupancy, investment value and other real estate benefits.

Green Value is a partnership of 10 government and private sector organizations that looked at literature, best practices and case studies in the USA, Canada and the UK. The effort was led by Canada's Royal Institution of Chartered Surveyors (RICS), a global standards and membership organization for professionals involved in land, property, construction and environmental issues.

The study was spurred by discussions between RICS and owners, lenders and developers of commercial real estate, who questioned the business advantages of green buildings, especially their ability to add value and risk.

Research reviewed more than 300 articles linking value and green buildings and 18 detailed case study interviews involved a qualitative assessment of the impact on value. Buildings were selected to provide a range of locations, building types and uses. Interviews were conducted with building developers, owners and occupants, focusing on the value benefits of green buildings compared with their conventional equivalents. The results were assessed in terms of value.

The study identified barriers to progress and provides 21 recommendations for change including removal of development, planning and accounting obstacles. The study calls on property industry and financial sectors, to work with green building advocates to emphasize the underlying value of green buildings.

RICS Canada past Chairman Chris Corps led the initiative and comments: "Most green building effort has focused on cost savings but the value benefits provide a more persuasive reason to go green." He points to increased demand from business as the key driver: "There is a clear competitive advantage to green buildings and we expect that economies and value will stimulate both demand and industry. Green buildings are good for business."

The Green Value report and an executive summary are available, as of this writing, for free download from the RICS web site.

Thanks to RICS Americas for the report.