Building A Better Real Estate Business: Going Green Pays
For real estate investors, brokers and executives looking to build a better and more profitable business, it’s official – going green pays. Having said that, it would be great if everyone in the industry strived to be as eco-friendly as they possible could. Not only would it serve to better the environment, but everyone could save money. Unfortunately, this is not how the average real estate business perceives green practices. However, it is increasingly becoming clear that going green can be more profitable in many ways. Going green is a viable option for any real estate investor looking to build a better business.
For those that have put this transition off, or thought it too expensive in the past, it’s time to take another look at going green. Globe St. recently acknowledged that Fannie Mae and Freddie Mac are planning the marketing of green rated, multifamily securities, while other developers are issuing $100M+ ‘green’ corporate bonds. They get that people want to vote more consciously with their dollars, even when investing and saving.
This is evidence of the value and importance of sustainability and Eco-consciousness practices regarding real estate businesses. The following list highlights the benefits of building a greener real estate company:
- Effects can enable execs to live longer, healthier lives resulting in more money and needing less for healthcare in retirement
- Better branding and reputation
- Positioning for potential grants and other direct and indirect financial incentives from gov.
- Increasing trust with consumers
- Reducing potential liabilities
- Preempting future regulatory demands which could mean hefty costs to comply later
- Visibility and recognition as an industry leader
- Potential for higher rents and attracting better tenants
- Drawing better talent, and potentially at a lower cost
- Adding value to properties
For those unsure where to start, there are plenty of options to choose from. Let’s take a look at some of the applications and options real estate companies can implement to go greener:
- Build new green, carbon neutral properties from the ground up
- Help establish new green spaces for the community
- Rehab existing properties with health, the environment and sustainability in mind
- Focus on buying and selling green properties as a niche
- Begin incorporating sustainable features to properties such as solar and rainwater harvesting and purification systems
- Using healthier green materials from flooring to cabinets and landscaping
- Daily operations from not printing emails to online file storage and driving less all matter
- Choosing Eco-conscious vendors to work with
- Smarter property management and rent collection tactics like online payments
- Choosing sustainable and organic options for lunching and dinning with clients and staff
The bottom line is that there are really no excuses not to go green, even if that means taking baby steps. For many, big transformations and repositioning could be the launchpad moment to take it all to the next level they have been searching for. It’s good for real estate professionals themselves, their families, and their communities. Health and environmental benefits aside, it can deliver significant boosts to the financial bottom line too.