Does A Green Building Cost More Up Front?
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Ask the Experts
by Gil Friend
September 2005
Offsetting the Cost of Building Green
I've heard that it doesn't cost more to build a LEED-certified building than the average building. Due to the extra planning effort, we're expecting it to be much more expensive, in addition to capturing the "low-hanging fruit" to get to certification. How can we keep costs under control?
Gil: Green buildings have long been an attractive investment due to lower operating costs (e.g., for energy, water, and storm and wastewater treatment) and improved worker productivity (largely from better lighting and air quality) that deliver an attractive return on investment on the higher capital cost of delivering "green." But many builders and owners jam on that higher first cost.
But as the industry moves up the learning curve, improving both technologies and design processes, the cost penalty is disappearing. As I wrote recently in New Bottom Line.
An analysis of 33 green buildings conducted for the State of California by Greg Kats of Capital E found a range of zero to two percent incremental first cost, and handsome ROI from lower operating costs, but- and this is key -- essentially no correlation between greenness and cost. More.....
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