The red hot topic of sustainability in the multifamily market is helping many investors see green in more ways than one. In a recent article for multifamilyexecutive.com, Carl Seville suggests multifamily buildings that obtain green certification may find financial incentives that would off-set initial costs for upgrading. To achieve green status, a building’s initial design or retrofit must occur to maximize efficiency and maintain LEED standards. Many of the incentives reaching this goal include obvious categories such as utility cost reductions brought on by replacing old systems, or increased rent growth brought on by new construction. However, many of the categories Carl suggests in the article also address less obvious fiscal motivations including construction cost reduction and increased good will with the general public. The article also notes that achieving green certification could be accomplished without additional construction costs, as buildings that comply with the 2012 International Energy Conservation Code (IECC) have immediate eligibility for Bronze-level certification.
For San Diego property owners, the prospect of achieving green certification would be a great addition to any investor’s goals. Recent studies suggest that San Diego multifamily buildings achieving green standards have been found to have lower vacancy rates in spite of higher rents. San Diego residents, seeking to lower their carbon footprint, are choosing to pay more rent in exchange for improved environmental impact. Elsewhere in the city, local legislators are working to incorporate sustainable technology in the other ways. New laws and programs are even offering solar installation for affordable housing development to increase property value and lower consumer costs. As property owners continue keeping pace with new and emerging trends in the multifamily market, identifying ways to increase a property’s worth at a minimum cost it crucial. Consider giving Carl’s article a read to see if your property has the potential for green certification status.