This article is from the Australian Property Journal archive
THE value of the U.S. green building market has bloomed by 50% from 2008 to 2010, despite the global financial crisis and the recession, according to McGraw-Hill.
McGraw-Hill Construction’s Green Outlook 2011 report found the value of green building construction starts increased from $US42 billion in 2008 to $US55 billion in 2009 and $US71 billion in 2010.
The green building sector represents 25% of all new construction activity in 2010. The market size is expected to reach $US135 billion by 2015.
McGraw-Hill Construction vice president Harvey M. Bernstein said green building is the bright spot in an otherwise tough economy, and in some sectors, that rate of growth has been remarkable.
In non residential building, for example, the green building market share is even higher than the overall market. Today, a third of all new non residential construction is green — a $US54 billion market opportunity. In five years, non residential green building activity is expected to triple, representing $US120 billion to $US145 billion in new construction (40%-48% of the non residential market) and $US14 billion to $US18 billion in major retrofit and renovation projects.
Health care construction this year is expected to grow its green share to as much as 40% (valued at $US8 billion-$US9 billion in 2010) — phenomenal growth in just two years.
Education (valued at $US13 billion–$US16 billion in 2010) and office green construction (valued at $US7 billion–$US8 billion in 2010) also remain strong sectors, showing high increases in market share, due in part to the fact that bigger projects are the most likely to “go green.”
This year, the U.S. Green Building Council’s LEED specification is mentioned in 71% of all projects valued at over $US50 million.
Bernstein said building owners are being encouraged to go green and have cited a reduction in operating costs of 13.6% on average for new buildings and 8.5% for retrofits.
Owners are also realising an increase in building values of 10.9% for new buildings and 6.8% for retrofits and increase in return on investment (ROI) of 9.9% for new buildings and 19.2% for retrofits.
“In today’s economy, firms that specialize in green or serve this market are seeing a tremendous advantage — and they’re doing good at the same time. Green building leads to healthier places for us to live and work in, lower energy and water use, and better profitability,” he concluded.
Australian Property Journal
