Green building smart in the long-term for commercial real estate

Green constructions is becoming more popular.

While many people may not be completely sold on commercial architects who build completely green properties, it may be more popular when it comes to attracting high rents, according to Forbes.

Green building is quickly becoming the standard for Class A properties, and commercial real estate companies may want to take note. In 2010, more than 30 percent of properties constructed were considered to be green, according to the news source. This came out to approximately $54 billion in construction.

Furthermore, by 2015, it is expected that green buildings will triple. This could equal as much as $120 billion to $145 billion in construction spending. This does not include the billions more in renovations to make non-green buildings more environmentally-friendly.

"Green building is fundamentally altering real estate market dynamics – the nature of the product demanded by tenants, constructed by developers, required by governments and favored by capital providers," according to RREEF Research. "The upshot will be a redefinition of what constitutes Class A properties and even institutional-quality real estate."

The news source added that continued green construction may not only be mandated by the federal government, but also could become the norm due to demand from tenants.

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