Costs and Benefits Analysis of LEED Building Projects

Cost Benefit Analysis of LEED Construction Project As the adverse effects of recent environmental problems, particularly modern urban construction, on cities are getting worse, the concept of green buildings is influenced by local governments and the federal government. According to the US Green Building Council (USGBC), the green building is a building that uses design and building practices to significantly reduce or eliminate the building's adverse effects on the environment and building residents.

The initial cost of the LEED building will be higher than usual, but there are many advantages. Most benefits are not long-term or fairly legitimate, but all these advantages greatly increase the value of LEED certified buildings against unauthorized buildings. The following table of Yudelson's book shows the general benefits. For the owner who pays close attention to the cost, several advantageous factors suddenly appear. 1) Utilities saving 30% to 50%, 4) Tax preferential real estate value These three advantages are a convincing good example of letting owners build LEED certified buildings. Of course you prepay even more, but people will pay more to live and work in environmentally friendly buildings with real LEED seals. As the value of the property increases, the cost of maintaining the structure is increasingly lower. This is a direct product of LEED certified funds to green technology.

There are many advantages to obtaining LEED certification in the project. First, it shows a positive image of the project to the community. The practice of green building helps save a lot of money and energy. Promotes clean and renewable energy. The quality of the indoor air and daylight improve the quality of life of the people in the building. Indirectly, this will help increase the productivity of buildings, houses or community people. Many cities and provinces provide tax incentives for green buildings and some US government agencies also use LEED or similar standards, some of which are equivalent to LEED Silver certification I will.

When we evaluated 60 LEED buildings in 2003, we analyzed the green building savings and found that the building saved 25-30% of the energy on average. However, it will also provide substantial benefits through better ventilation, temperature control, lighting control, and reduced indoor air pollution to improve productivity. As of 2008, the buildings of LEED (and similar Energy Star) were scarcely evaluated through case studies. From a purely economic point of view, several studies in 2008 discovered that the LEED rental office space claims higher rents and higher utilization rates than usual. CoStar collects data on assets. An additional fee for the minimum benefit is estimated at 3% and the additional charge for silver is 5%. Recent studies have confirmed the results of these earlier studies that certified buildings achieve higher rents, selling prices and utilization rates, and lower capitalization rates reflecting lower investment risks .