The State of the Market for Green Buildling
According to a report conducted by McGraw Hill Construction from 2013, the hospitality and retail sectors have begun to invest more resources to green construction. Nearly fifty percent of owners of retail are involved in green building. That number rose remarkably in recent years, and sat at just 18% in 2011. The same report predicts that this number will surpass the fifty percent mark at some point in the next few years. A green building, according to the report, was one that constructed with a certification from the Leadership in Energy and Environmental Design (LEED), or another recognized certification.
Additionally, those in the hospitality industry have also begun to embrace green building. As of 2013, nearly half of hotel owners were considered to be highly involved in the green building. This was a marked increase from just two years prior during which a quarter of the same group considered themselves to be highly involved in green construction. This number is expected to continue to rise through the following years as indicated by the report.
This increase can be attributed to a variety of reasons. Primarily governments implemented more and more incentives for business to move forward with green building. Additionally, the cost of construction and operation has also decreased as technology has improved, providing further financial incentives for businesses to embrace the movement.
The report notes that owners in the hospitality industry that invested in sustainable design have seen an increase in asset value of more than ten percent. Similarly, they experienced an 14 percent increase and a 1 percent decrease in the property’s return on investment and annual operating costs, respectively. Owners in the retail industry benefited similarly but to a lesser degree. They experienced an eight percent drop in annual operating costs, an eight percent rise in the return on investment of the property, and a seven percent increase in asset value. The worldwide demand for green construction materials has increased considerably according to the report. The study projects that this market will be greater than a quarter of a trillion dollars by the year 2020.