The Business Benefits of Green Buildings SmartMarket Report, released today by McGraw-Hill Construction, CB Richard Ellis (CBRE) and the University of San Diego's (USD) Burnham-Moores Center for Real Estate during the U.S. Green Building Council's (USGBC) Greenbuild Expo in Chicago, says green buildings make dollars and sense for investors.

As the second phase of an ongoing study initiated in 2009 by CBRE and USD, the report offers a comprehensive look at how commercial building owners, managers, tenant firms and occupants perceive the benefits of green buildings and reveals bottom-line and human factor (health and well-being) benefits that are driving green building growth in the U.S. The findings show that sustainable buildings generate stronger investment fundamentals than their traditionally managed competitors.

"The value of green is undeniable—and delivering during a recession," said Harvey M. Bernstein, vice president, Global Thought Leadership and Business Development, McGraw-Hill Construction. "Owners of green buildings consistently report financial benefits, such as 5% building value increase and 4% ROI, as leading motivators for building green. We also found that people care about the health features of green buildings, driven by access to daylight and better indoor environmental quality."

From a financial perspective, owners of sustainably managed buildings anticipate a 4% higher return on investment; 5% increases in building value and occupancy; 8% drops in operating costs; and 1% rise in rental income. Roughly 79% of owners surveyed believe that green helps them attract and retain tenants, a distinct competitive advantage in a difficult economy. Furthermore, over 70% of surveyed office building owners are already engaged in greening a significant percentage of their portfolio.

"This study underscores the viability of sustainable buildings as smart investments," said Dave Pogue, national director of Sustainability, Institutional and Corporate Services, CBRE. "In addition to the higher occupancy and rental rates we've seen throughout the study's two-year history, the study demonstrates that sustainable practices yield measurably better investment fundamentals. CBRE is proud to work with McGraw-Hill Construction and USD to support greater change within the industry and promote the positive future green building provides."

Greater productivity, satisfaction, health and well-being are also supporting green building growth. 10% of green building tenants have seen improvement in worker productivity, and none reported decreases. Tenant satisfaction increases after green upgrades, with 94% of managers seeing higher satisfaction levels after green projects. But most of all, people care about the health impact of green buildings, including access to daylight and better indoor air quality; 83% of tenants believe they have a healthier indoor environment as a result of green efforts.

"The impact of green on human health and productivity is the holy grail of green building results," Bernstein added. "While this study measures significant benefits perceived today, further measurement is needed to fully capture it. We look forward to continuing to work with CB Richard Ellis and the University of San Diego to track these buildings over time in the pursuit of even more answers."

The largest and longest running study of its kind, this ongoing analysis benchmarks and measures green building benefits and economic outcomes as a framework of investment criteria for retrofit activity. A full update to the 2009 report, Do Green Buildings Make Dollars and Sense?, should be released later this year.

What is the most sustainable structure that you have ever encountered in a city? All sorts of interesting green buildings may come to mind as you contemplate this question but the answer may be right outside your window.