Category: Finance, Real Estate.
Environment friendly buildings seem to be the latest trend in corporate America. The environment friendly buildings are commonly referred to as the Greens or Green Buildings.
This holds true especially in many of the corporate offices that are being set up and is also in demand compared to other buildings. A few big companies operating from these green buildings include Goldman Sachs, IBM Corp, Hearst. Taking this trend to newer heights is the Bank of America. JP Morgan Chase and Toyota Motor. They plan to build a 52- story eco skyscraper near Times Square. Sustainable construction( referring to the construction of environment friendly buildings) is one of the fastest growing industries. Accenture is also an active participant in this trend and has set up green office spaces, which are let out on lease all over the country.
Many of the new construction companies that are coming up and many existing construction companies are getting themselves certified by the U. Green Building Council s Leadership in Energy and Environmental Design( LEED) . Most of the constructions nowadays are environment friendly and soon much commercial construction will be made green. The green buildings help to save a significant amount in terms of funds spent on utility. Developers also realize the potential in the existing constructions and are renovating these properties and making them eco friendly, if not completely at least partially. They use less energy and water as compared to the traditional buildings.
An added reason for the popularity of green buildings is the higher rent they receive. This becomes very cost effective for benefits both, the environment and the builders. The fact that a building is environment friendly helps to increase the rent up to 3% on an average. They are not only cost effective but also help you to make more profit out of the building. These buildings also increase the value of the property by about 5% . The sustainable materials available keep improving with technology, being cheaper and readily available for use. This is very profitable to investors.
The materials used also improve in terms of quality and quantity. So how can the investors get their hands in on this money? There are many trusts available from which you can choose and these trusts have commitments not only towards renovating existing projects but also new constructions. The simplest option available is the Real Estate Investment Trust or REIT. They continue to add new projects to their investments, as and when they fulfill existing commitments. The best option for investors who are not so sure of the longevity of this boom in commercial eco- real- estate is the Spectra Green Fund.
The trusts believe that the green buildings will continue to grow even if there is a dip in the commercial real- estate market. This fund invests a percentage in the REIT, along with the various other clean energy stocks. Another investment option available is to invest in the companies that produce the materials for the construction of the green buildings, the companies that measure the energy produced etc. This is now a safe bet for the cautious investors.
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