OUTDOOR SPACES ENHANCE REAL ESTATE VALUE

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OUTDOOR SPACES ENHANCE REAL ESTATE VALUE

In a  recent study by Natural Resources Defense Council (NRDC), US, it has been established that green infrastructure and green spaces around a built structure help add commercial value to property.

Understanding Green Infrastructure Elements
“Green infrastructure” in urban and suburban areas—that is, techniques like green roofs, tree plantings, rain gardens, and permeable pavement, which absorb rainwater — is proven to help solve major water pollution problems.

These water management practices store rainwater for use, evaporate it back to the atmosphere, or let it filter into the ground, where it benefits vegetation and replenishes  groundwater.

Benefits of green infrastructure
As per the NRDC report, it has been found that green infrastructure on private property can provide a wide range of benefits to commercial property owners and their tenants. Such office buildings are perceived to be more upmarket as compared to other structures in the same vicinity. The benefits outlined in the NRDC report include:

  • Increased rents and property values
  • Increased retail sales
  • Energy savings
  • Local financial incentives (such as tax credits, rebates, and stormwater fee credits)
  • Reduced infrastructure costs
  • Reduced flood damage
  • Reduced water bills
  • Increased health and job satisfaction for office employees
  • Reduced crime
  • Cost v/s ROI

On any given property, these benefits can add up to big money over the long-run. This is true both for new construction projects – to take full advantage of opportunities to integrate green design features – and at existing developed sites – where investments in retrofits can improve older properties and create value.

As large outdoor spaces are imaginatively designed and worked into the core of the built structure, the tenants and buyers view this as a value-add in the property.

For more details on how green infrastructure adds value to commercial property, log on to: http://www.nrdc.org/water/commercial-value-green-infrastructure.asp

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