Costs and Benefits

But Did You Know?

• The value of green building construction is projected to increase to $60 billion by 2010 (Source: McGraw-Hill Construction Analytics, SmartMarket Trends Report 2008)
• The green-building products market is projected to be worth $30-$40 billion annually by 2010 (Source: Green Building Alliance)
• Over 3.6 billion square feet of commercial building space is involved with the LEED green building certification system
• Every business day, $464 million worth of construction registers with LEED
• By 2010, approximately 10% of commercial construction starts are expected to be green (Source: McGraw Hill Green Building Smart Market Report 2006)
• The three largest segments for nonresidential green building construction – office, education and health care – will account for more than 80% of total nonresidential green construction in 2008 (Source: FMI’s 2008 U.S. Construction Overview)
• In a 2003 study, an analysis of first costs and 20-year operational costs and savings of 30 completed LEED projects showed that, on average, while the additional first cost was 2%, the total 20-year net present value of improvements attributed to energy, emissions, water, waste and commissioning is $11.98 (The Costs and Financial Benefits of Green Buildings)
• A critical review of dozens of green-building projects across the nation done in 2006 concludes there is no difference in average costs for green buildings when compared to non-green buildings (The Cost of Green Revisited)
• A 2007 report found while average construction costs across the board had risen 25-30% LEED certified projects were coming in within budget (The Cost of Green Revisted)
• A recently released 2008 study finds: (Commercial Real Estate and the Environment: CoStar) 
  • LEED buildings command rent premiums of $11.33 per square foot over their non-LEED peers
  • LEED buildings have 4.1 percent higher occupancy
  • LEED buildings sell for a remarkable $171 more per square foot than their peers
  • Rental rates in Energy Star buildings represent a $2.40 per square foot premium over comparable non-Energy Star buildings
  • Energy Star buildings have 3.6 percent higher occupancy
  • Energy Star buildings are selling for an average of $61 per square foot more than their peers
• recycling can help reduce a contractor's construction costs (Building Savings, EPA)
• a "green" designation can also increase a building's market value as assessed by appraisers and investors (GREEN VALUE: Green buildings, growing assets Report)
• A 2007 study by Deloitte found companies declining to green existing buildings may incur unrecoverable loss due to increased operating costs, lower productivity, poor public image, worker dissatisfaction (The Dollars and Sense of Green Retrofits)

The Real Costs*

Energy consumption

• Buildings represent 39% of U.S. primary energy use (Source: 2003 U.S. DOE Buildings Energy Data Book)
• Buildings in the U.S. account for 39% of all CO2 emissions (Source: EIA Annual Energy Review 2005. U.S. Energy Information Administration, U.S. Department of Energy)

Electricity consumption

• Buildings represent 70% of U.S consumption. (Source: 2003 U.S. DOE Buildings Energy Data Book)

Water use

• Buildings use 12.2% of all potable water, or 15 trillion gallons per year (Source: U.S. Geological Service, 1995 data)

Materials use

• Buildings use 40% of raw materials globally (3 billion tons annually) (Source: Lenssen and Roodman, 1995, “Worldwatch Paper 124: A Building Revolution: How Ecology and Health Concerns are Transforming Construction,” Worldwatch Institute)

Waste

• The EPA reported 209.7 million tons of municipal solid waste of which 136 million tons were estimated as attributed to building-related construction and demolition (C&D) debris in 1996. (Sources: U.S. EPA Characterization of Construction and Demolition Debris in the United States, 1997 Update. U.S. EPA Characterization of Municipal Solid Waste in the United States, 1997 Update. Report No. EPA530-R-98-007)

It is estimated that buildings account for nearly half of all greenhouse-gas emissions, and over 75 percent of all electricity produced by power plants – a compelling argument for social responsibility by regional land-use planners and local governments, and the financing and building industries. Green building is good for business: The U.S. Green Building Council has continued to document green buildings conserve natural resources, protect ecosystems, improve air and water quality, decrease waste, reduce capital and operating costs, increase property values, boost worker productivity, improve the health, well-being, and quality of life for occupants, and benefit the community by reducing pressures on the local infrastructure and service-delivery systems. Green building serves what is known as the "triple bottom line": economy, ecology, equity.

With the release of An Inconvenient Truth and the revelation of building's impact on the health, energy costs and the future of the planet, shifting perceptions of the industry's role in greenhouse gas-emissions reductions, an unprecedented level of government initiatives, an increasing demand for green in residential construction, and improvements in sustainable materials have all served to expedite the growth of green building. Membership in the US Green Building Council (USGBC-LEED), including over 17,000member organizations including corporations, governmental agencies, nonprofits and others from throughout the industry, has more than tripled since 2000.