The green building movement is receiving a lot of interest from institutional investors and stockholders these days, as they understand the long-term value of investing in efficient buildings. Companies and investment trusts that own properties across the country are improving their portfolio of properties, by taking into account building efficiency and green credentials.

Real estate investment trusts are taking a leaf from the Leadership in Energy and Environmental Design program, as they bring a lot of the buildings under their control up to code. More than one third of buildings controlled by these investment trusts in the United States are classified by LEED.

It’s interesting to note that, despite the downturn, interest in green investments remains high. Investors were able to look into the long-term practicality of building efficiency investments, with an eye on sustainability. Energy efficiency is a hot topic conversation among building owners and occupiers alike.

Not to be overlooked is a significant trend among leaseholders, who are increasingly critical of building efficiency when it comes to establishing a place to operate. Tenants are insisting that the buildings they occupy are “green,” from a point of view of credibility and because, increasingly, employees demand it.

Tenants will pay more, over and above the asking rate, in order to occupy space that they consider to be green, or categorized according to LEED standards. Due to this trend, owners can see that they are likely to retain higher occupancy rates and longer leases, so they are more than willing to make the investments in building efficiency up front.

Investors have not overlooked the fact that upgraded and efficient buildings tend to exhibit lower operating costs and represent a much more efficient and manageable investment. When coupled with proactive, energy-efficiency-chasing tenants, the position can be classified as “win-win” all around.

While green buildings can cost as much as 5% more to actually construct and bring to the market, these costs are more than absorbed through operational efficiencies in the very early years. The real estate investment trust business has been actively involved in the pursuit of building efficiency since they introduced their Leader in the Light program, back in 2005.

Building efficiency standards will undoubtedly increase exponentially as society comes to demand an approach to energy efficiency and sustainability.

Daniel Stouffer has a lot of information about building efficiency and how a visit to www.verisae.com will be of use to you.