Why are sustainable renovations a smart long term investment?
By providing increased energy efficiency, water preservation, and optimization of resources, sustainable renovations deliver buildings that have lower operating expenses. The quality of the systems, solutions, and materials used also make the buildings last longer and with lower maintenance costs, risk and liability.
Apart from these economical benefits, sustainable renovated buildings bring improved thermal and acoustic comfort, better indoor air quality, and a safer environment for the occupants, resulting in turn, in greater well-being and health. Research shows that people working in sustainable buildings tend to be more productive, less absent due to sickness, and happier to go to work.
Sustainable renovations require higher upfront capital costs, however, they will later be offset by savings in energy, water, and other financial rewards. As the public becomes increasingly aware of the overall benefits of sustainable buildings versus conventional ones, demand grows, as does greater marketability, higher occupancy rates, and rental and asset premiums.
Certifications of sustainably renovated buildings increase even more rental and building value. The 2009 Henley University (UK) study concluded the sale prices of buildings could increase by up to 35% if LEED certified, 31% if Energy Star certified, and 5% for non-certified buildings.
Therefore, investing in sustainable renovations makes business sense for all stakeholders: Investors get a major advantage in an increasingly competitive market, savings in operational and maintenance costs, increased leasing velocity, lower void periods, higher rent levels, higher real estate asset value, and return on investment. End-users benefit from cost savings, improved health, comfort, productivity, and wellness.
Sustainable renovations not only link better environmental performance to greater financial returns but also help to reduce the carbon footprint.