Small Business

Investing in €˜green' buildings is good business

Written by Sissi.Wang

Futuristic spaces where the building is powered using solar panels, windows are programmed to pop open at set times to let in fresh air, and an underground reservoir collects rainwater to be consumed for non-drinking purposes, are nice to dream about, but a poor investment in real estate. Well, is it really?

A study from the University of Guelph examined 10 years of data from 148 buildings in Canada and 143 in the United States, and found that environmentally friendly buildings that met energy efficiency and sustainability standards have more satisfied tenants who are more likely to renew their lease. Landlords also enjoy higher revenue generated from higher rents and occupancy rates.

Highlights of the findings from the study include:

  • Rents on average are 3.7 per cent higher

  • Occupancy rates were 18.7 per cent higher in Canada and 9.5 per cent higher in the U.S.

  • Tenant renewal rates were 5.6 per cent higher in Canada

  • Tenant satisfaction scores were 7 per cent higher in Canada

  • Energy consumption per square foot was 14 per cent lower in the U.S.

The data clearly shows that investing with the environment and sustainability in mind is also good business for building owners and investors. It’s time to go green, everybody.

Originally appeared on