By Jeff Bardos, CEO Speritas Capital Partners
Updated on November, 9, 2020 – Greenwich, CT
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Buildings account for close to 40 percent of CO2 emissions in the United States, but the construction industry has caught on to this and embraced green building. Here are just a few of the many benefits of environmentally-friendly construction.
Green Building is Good for the Environment
The most obvious benefit of green building is the positive impact that it can have on the environment. In the United States alone, LEED-certified green buildings have 34 percent lower CO2 emissions compared to more traditional buildings, and they consume 25 percent less energy as well as 11 percent less water. They’ve also diverted over 80 million tons of waste from landfills.
Green Building is Cost-Effective
Green buildings are more energy-efficient and have nearly 20 percent lower maintenance costs than more traditional commercial buildings. They also make properties more valuable with an estimated 4 percent increase in value. It has been estimated that LEED-certified buildings will essentially pay for their own construction in just seven years.
The Green Building Market is Expanding
The green building sector is expanding at a rate that is outpacing almost all other construction growth in the United States. Green construction is expected to create 1.1 million jobs and generate $75.6 billion in wages by 2018.
With its positive impact on the environment and virtually unprecedented growth in the marketplace, it simply makes sense for a business to embrace green construction and LEED-certified commercial buildings. These buildings are far more cost-effective than typical commercial buildings, which makes them ideal for small businesses who have limited resources. LEED buildings have become the international standard of excellence when it comes to green construction, and more green construction projects are being greenlit all over the world.
Green Building Opens Up Attractive Financing Options
Developers and property owners can access financing programs designed to encourage green building techniques. Freddie Mac and Fannie Mae offer financing benefits and PACE/CPACE financing can be a great way to recoup the building costs over a defined period of time.
About the Author
Jeff Bardos, CEO, Speritas Capital Partners
Jeff has over 30 years of experience in the financial services industry. After graduating from the Columbia Business School, he joined the New York Federal Reserve Bank as a senior staff member in Bank Supervision, leading the Bank Analysis department. From the nation’s central bank, Jeff moved into the private sector, working at senior levels in commercial banking, retail banking and risk management. He has also played senior founding roles in several start-ups. Learn more about Jeff.
Speritas Capital Partners specializes in complex credit, collateral and cash flow situations and we never take upfront fees.
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For more information about green building and how it can benefit your commercial real estate project financing, contact Speritas Capital Partners today.