It’s easy to think of green real estate as only being a channel of profit. Increased revenues, decreased rehab costs and other factors are all easy to understand. However there are other groups (outside of Investors) who benefit directly from green real estate projects. Let’s take a look at each and what they potentially gain from green real estate projects:
- Green Product Suppliers
- Housing Industry
- Higher returns through higher cash flow, decreased expenses, reduced vacancy expenses.
- Reduction in capital expenses as rehab expenses can be funded through a variety of energy efficiency grants/incentives/rebates.
- Increased appraisal values.
- Safer investment as properties enjoy greater demand and stability.
- Pride of ‘Action’. Investors are directly to contributing to improving our environment, creating jobs and improving the lives of buyers while earning healthy profits.
- Healthier residents resulting in decreased public health-care expenses.
- Economic growth through job creation, tax revenue, etc.
- Increased home values. Green properties appraise higher and raise the median home prices in their neighborhoods.
- Neighborhood beautification potentially contributing to lower crime rates.
- Lower monthly utility bills.
- Healthier lives (potentially lower health-care expenses, lower obesity, etc).
- Healthier children (potentially lower incidences of childhood asthma, diabetes, etc).
- More disposable income to pump into our economy.
- New ‘green’ jobs are created throughout the US.
- Unemployment is reduced as laid off workers are re-trained and re-hired.
- Green companies can leverage ‘green’ employment grant subsidies to increase employee size.
- More suppliers in marketplace.
- Increased demand equals more production equating to lower product prices.
- New, beneficial products enter the market faster.
- Larger selection of products more readily available.
- Improve home values nationally.
- Homes are more affordable to own and operate.
- Take bank-owned properties off the market.
- Reduce vacancies potentially resulting in crime rate declines.
- Lower CO2 emissions.
- Less energy consumed.
- Reduction in landfill waste.
- Recycle materials that were targeted for waste stream.
While green real estate is not a panacea for all that ails our country, the positive benefits that derive from it are substantial. You should pursue ‘green’ because it makes fiscal sense. You should feel proud of what you’re doing based on the benefits to the groups above.