Reasons to Go Green for Your New CRE Investment


Sustainable remodeling and construction have received great popularity. The green buildings are no longer experimental, but they have become a necessity. The current, using energy efficiently and reducing waste can bring a major impact on the environment.

It is not just for the homes, but the commercial owners who are getting on in the trend can benefit greatly. This is something that has become the need of the hour.

More and more people in the industry are looking for sustainable options so that somehow they can contribute to the environment and bring a change. The guide here will provide clear insights as to how or why one should consider going green in the CRE industry.


Why go green?

A green commercial building will help save water and energy. Also, it will ensure that all the possible items are well recycled at reused. Also, incorporating sustainable materials and avoiding toxic products would be quite easier.

This thus takes part to make the environment healthy. By opting for a green building, one will make a good shift. Here are the six major reasons why the building owners are going for sustainable options.


  • Save water and energy costs

When there is a possibility of saving even a dollar, it becomes a top reason why the property owners will choose to go the green route. No doubt some small businesses make use of solar energy for going ahead. There are similar greener practices that can help save a lot of money.

For instance, updating the HVACA system, improving the insulation of the building, and installing low-flow fixtures can create cut the utility bill by more than just the initial expense. By making use of the green options, you will not only be attracting customers but also save a lot of money.

It will work great and ensure the property has got all the essentials required for functioning while there is a possible chance for saving as much money as possible.


  • Increase property value

The buyers and the investors will consider sustainable buildings more favorable. When the utility cost is low for the present owner, it will be low for the future owner. Besides, the building will be move-in ready.

So when it comes the time to prepare the commercial property for sale, then the green buildings will come with a premium over the old updated options. Even when the owner keeps the building, they will have more valuable assets for supporting the expansion and borrowing.


  • Attract customers

The current customers, the tenants, are looking for eco-friendly businesses when deciding on the right place for investment. When they see sustainable steps the property owner is taking, this will put them on the shortlist of the trusted segment of the target market.


  • Promote health and safety

Most commercial property owners are concerned about the well-being of the people in the building, like the employees, tenants, or the customers who will visit the premise. The green buildings make use of fewer unhealthy chemicals.

Thus there will be improved air quality inside the building. It will help the employees feel more comfortable and secure. It will help build a reputation in front of the tenants and the owner as an employer who cares about the people, and the business takes care of the personnel and have an edge in retention.


  • LEED certificate

It is a program under the aegis of the US green building council. It is a point system for the energy efficiency of the building. There are LED certificates for specific scores. The certification is recognized in the industry, and it makes the building a lot more attractive to potential buyers.


  • Business leadership and expectation

The green building will help keep up with the expectations of the community and guarantee proper health. They have become a common aspect of life. There is no reason for delaying the green improvements required in the business. The ones making use of green practices will be seen as leaders in the community.

Besides, healthy buildings will build the reputation of the businesses in the community. The people in the current scenario are looking for businesses that take responsibility for the impact on the environment and do everything possible to make a positive impact.


Making the buildings green

Making a green move can be quite beneficial. It can be anything from installing solar panels to fixing the fixture problem. Here are certain steps that commercial business owners can take.


  • Schedule an energy audit

Those property owners who have no idea where to begin can choose this type as a starting point. The environmentally concerned agencies or the utility companies can provide assistance whenever required. They are there to point out the areas that can provide the most significant impact in the industry.


  • Upgrade the HVAC system

This will include replacing the HVAC system with better energy-efficient models. Also, upgrading the appliances to ENERGY STAR units. It is vital to think about more efficient non-traditional heating systems like boilers which make use of the water for generating radiant heat.


  • Solar and passive solar

There is no requirement to take an array of solar panels for making better use of the sun. It will work great as the passive solar buildings have got south-facing windows and interior thermal mass like bricks, concrete, tiles, and stones, which absorb the solar heat better. It is then supplied to different building areas.


  • Low-use water fixtures

The reduced flow forces the toilets to slash water usage. One can go for dual plumbing systems segregate water for washing and drinking from the reclaimed water that will be suitable for both irrigation and toilet plumbing.


  • LED lighting

By making use of the efficient light bulbs, one can create cut the electricity use by 75% and also there will be a great save of labor in the large building because the lights won’t be changed that frequently.


  • Outside greenery

The terrace area or the garden can greatly help insulate, reduce heating costs, and provide shade. It also will absorb carbon dioxide and assure the release of oxygen in the environment. Thus, working hard to provide better to the environment.


  • Advertising

No, there is no possibility that advertising can make a building greener. However, the owners who have chosen to go for the sustainability upgrades have got all the right to tell the community about their steps.

Besides, the owners can also mention green practices in the advertising. They can put bathroom signs which clearly state how many new fixtures they have installed.


Sustainability has become a mutual benefit.

The market is seeing great pressure from the investors, tenants, and owners for implementing environmentally friendly strategies that will lead to lower operating costs and better property values.

The investment is generally considered below, and the sustainable buildings that have been developed for existing climate change are quite popular in the market. The buildings with exclusive features like smart HVAC systems, and LED lights can be quite beneficial for overall cost reductions.

Such properties are in high demand by the tenants. The companies involved in sustainable buildings can improve their brand reputation and get good results. Remote work has become quite common. There is now a unique opportunity for developing ambitious programs and start re-designing the current mechanism to provide the best.

The companies are now working with a reduced capacity of 50%. In some cases, it can help reduce carbon and energy usage. Sustainability is becoming a priority for the corporate real state teams. It can be due to the factors like covid 19 and the increasing pressure from the international agencies, public government, etc.

Given the market dynamics, the corporate teams will put in all their efforts and guarantee that the strategies benefit employee wellness and the company’s reputation. When the buildings have an efficient commercial real estate performance management framework, it will be easy for them to track the effectiveness of the policy and take sustainable moves to add more value and ensure effectiveness.

Real state sustainability management must be able to develop based upon the widest strategies of the company, its vision, and its objectives. Besides, this strategy should be fully alive with the corporate objective of the company and contribute to the formability of all the targets.



Sustainability is the need of the hour. There are now companies that are coming up with strategies that will help bring sustainable change. Given how things are changing, the builders are making the changes in the property to assure proper demand and also to fulfill the needs of the people. Understanding the market and taking measures accordingly is important.

As a new investor or builder, you can consider taking help from Private Capital Investors. The company has got the experts who will be there to provide proper support. Right from helping get the funding to finding the right place for investment and the upgrades, they will provide assistance with all.

Want to learn more? Get in touch with us today.

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