325 Million Meters-Squared of New Green Buildings Floor Space Was Built in 2013 as Internal Rates of Return Reached a Steady 5% or More, Lux Research Says
BOSTON, MA--(Marketwired - Oct 29, 2014) - Construction of green buildings rose to 325 million m2 of new floor space in 2013, representing a $260 billion market, according to Lux Research, with growth driven by economic benefits rather than environmental motivations.
Growth has exceeded expectations as green construction marches toward a significant share of the mainstream market. In the United States, for example, green buildings command an estimated 20% of new construction.
"Green buildings are driven not by utility savings, but by upticks in rental income or resale value," said Alex Herceg, Lux Research Analyst and the lead author of the report titled, "Cash Is King: Assessing the Financial Performance of Green Buildings."
"Those factors, along with government incentives, can make the financial case for green buildings, delivering predictable internal rates of return (IRRs) north of 5%," he added.
Lux Research analysts studied utility savings, rental rates, resale value and government incentives in green buildings and their impact on IRRs. Among their findings:
The report, titled "Cash Is King: Assessing the Financial Performance of Green Buildings," is part of the Lux Research Efficient Building Systems Intelligence service.
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Contact:
Carole Jacques
Lux Research, Inc.
617-502-5314
carole.jacques@luxresearchinc.com