Why Choose Green?
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Rent premiums and reduced vacancy
Tenants that select green-certified space typically will pay a premium to locate in that space. A 5% rent premium can increase the building value by 5% to 7%. Green-certified rental properties also enjoy higher occupancy rates, writing off less to vacancy. The occupancy premium can increase the building value by 2% to 4%.
Again considering a typical 50,000 square foot office building, the Net Present Value of these two rental benefits can amount to a gain exceeding $400,000 in today’s dollars. (Assuming a 10-year life cycle and a 12% discount rate.)
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