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Why Commercial Real Estate Investors Should Think Green

 | 
August 4, 2022
UPDATED: 
December 30, 2022
Why Commercial Real Estate Investors Should Think Green

Sustainability is no longer a business buzzword but the need of the hour. Not surprisingly, it is a part of every industry vertical, and commercial real estate is no exception. Whether you are a small-time investor or operate a large-scale land development company, you must prioritize sustainable properties. Green buildings are no longer experimental or futuristic, but they are a mainstream concept. Think beyond your environmental responsibility because the benefits of going green extend far beyond the evident ones. Let us explain why commercial real estate investors should adopt a sustainable mindset.

Attract and Retain Clients

Homeowners and business owners are more than keen to embrace sustainability as a way of life. The mindset has a far-reaching impact on the real estate market, with green properties emerging as big winners. Investing in them is a wise decision as it enables you to attract and retain clients for the long haul. You only need to market the sustainable measures to win a large segment of your target market. It is an opportunity worth picking because sustainability is here to stay.

Increase Profit Margins

Another surefire benefit of going green with your commercial real estate investment is that it paves the way for higher profit margins. Although you may spend more on eco-friendly installations upfront, the property is likely to command a premium over its conventional counterparts. Even if you want to keep it as a long-term investment, the rental value pays back the initial costs sooner than you expect. 

Stay Legally Safe

Investing in eco-friendly projects keeps your business legally secure as you need not worry about flouting environmental regulations. Green projects start with Environmental Permitting and due diligence, so there is hardly a chance of legal issues down the line. Whether you build from scratch or buy a building for resale, you can rest assured about being on the right side of the law. You also save yourself from the risk of hefty penalties for breaking the law. 

Promote Health and Safety

As a conscious land developer and investor, you expect to go the extra mile to promote the health and safety of residents. Green buildings cover both fronts as they minimize the use of toxic paints and polishes. The indoor air quality is healthy and prevents respiratory issues for residents and workers. Moreover, sustainable properties are designed to promote well-being as they facilitate natural light, fresh air, and optimal temperatures. Owners and renters are also stress-free about energy bills as these buildings are inherently energy efficient.

Enhance Business Reputation 

A sustainable approach benefits the reputation of your business, regardless of its size and scale. Whether you flip properties or invest in multi-million dollar projects, going green makes you a leader in your space. Your business secures a competitive advantage in the domain because buyers and renters prefer to stick with forward-thinking enterprises. You may even get subsidies and tax credits from the government.

Thinking green is the best thing you can do as a real estate investor. It helps your business on the commercial front and takes your reputation to the next level, so this is a trend you should not miss out on.

Author

  • Chuck Parsons

    Chuck is Score LA’s Executive Director of Events and Marketing. He aims to help business owners and would-be entrepreneurs in Los Angeles improve their business practices.

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