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5 Business Advantages of Green Buildings

To reduce the environmental impact of cities, sustainable construction is essential. Keep in mind that buildings account for almost 40% of global emissions and their total area will double by 2060. Unless new buildings have eco-design features, emissions will continue to grow at the same rate.

However, the advantages of green buildings are not just environmental – they also have a lower cost of ownership over time and receive more attention from potential tenants. Additionally, in the case of New York, a green building can help you comply with various laws and regulations.

Get green design for your next project and reduce utility bills and emissions.

1) Green Buildings Save on Energy and Water Bills

Thanks to their efficient design, green buildings can operate with less energy and water than traditional buildings. The specific savings required may change depending on the certification the building owner seeks, but more efficient use of water and energy is a hallmark of green buildings.

For example, LEED requires at least 20% water savings over the standards-required baseline and an energy-efficient design in accordance with ASHRAE 90.1 (or an equivalent standard). A building that does not meet one of these requirements cannot obtain LEED certification, no matter how high it scores in other performance categories.

EDGE Certification also focuses on energy and water conservation, requiring 20% ​​savings in both areas, along with a 20% reduction in embodied energy in building materials.

2) Green buildings have healthier indoor environments

indoor environmental quality

Creating a healthy indoor environment is a priority area in many building rating systems, especially WELL certification. The following are some common measures used to improve indoor environmental quality or IEQ:

  • Avoid building materials that emit large amounts of chemicals through the release of gases.
  • Using ventilation above code requirements to maintain a constant supply of fresh outdoor air.
  • Do not allow tobacco smoke in indoor or outdoor areas near doors and windows.

Human health and indoor air quality are strongly linked, especially in modern cities where we spend 90% of our time indoors. For example, volatile organic compounds (VOCs) can cause eye and nose irritation with short-term exposure, and long-term exposure has been linked to some forms of cancer.

3) Green Buildings Have a Marketing Advantage

The benefits described above are not only attractive to building owners, but also to potential tenants. Paying lower utility bills and having better air quality are strong selling points that can convince a tenant to sign the contract. If the building is already certified by a rating system such as LEED or WELL, the owner can display the sign where it can be clearly seen.

In New York City, buildings are also subject to energy ratings under Local Law 33 of 2018 . Unlike a green building certification, which is optional, this grade is mandatory and must be displayed regardless of your score. Low energy buildings are less attractive to tenants as they expect higher electricity and gas bills.

4) Green Buildings Qualify for More Incentive Programs

green finance

Energy incentive programs vary depending on the building's location – some are offered by state agencies, while others are managed by utility companies. There are programs that directly target energy efficiency, while others focus on solar energy and other renewable energy systems.

Depending on how an incentive program is designed, there may be a list of pre-determined measures that are eligible for incentives. For example, these may include LED lighting and space heating equipment with a specified efficiency rating. Other programs are performance-based, where you can use any combination of measures as long as the building saves energy.

In New York City, two of the best-known programs are NY-Dom (solar energy) and Con Edison Rebate Program for Homes and Businesses.

5) Green buildings exceed local energy codes and regulations

Green building certifications have strict design requirements, which are more demanding than energy codes. However, this also means that developers should no longer worry about most code requirements since they have already been exceeded. There may still be specific requirements and red tape, but energy performance requirements are already covered.

In the case of New York, green buildings can also more easily meet Local Law 97 of 2019. This law is part of the Climate Mobilization Act and applies emission limits to buildings larger than 25,000 sf starting in 2024. However , as green buildings are already efficient, their emissions are already below the limit in most cases.

Conclusion

The benefits of green buildings are not just environmental – they make financial sense for their owners and occupants benefit from an improved indoor environment. Eco-design features can also be used to meet local energy codes and specific laws and regulations such as LL97.

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