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The Good Business of Green Buildings

"In recent years, the global real estate industry has been adopting numerous green building strategies and technologies to reduce its overall environmental impact, and these initiatives are gaining popularity. According to the World Green Building Trends 2016 SmartMarket Report by Dodge Data & Analytics, the global green building sector doubles roughly every three years. In the United States, growth in the green building sector is continually outpacing overall construction growth. The U.S. Green Building Council (USGBC) estimates that 40 percent to 48 percent of new, nonresidential construction projects will be considered green in 2016, versus only
2 percent in 2005.4 This progress has been driven in large part by the actions of governments and advocacy groups encouraging the implementation of green standards. However, the most powerful driving force behind the trend towards greener buildings—and the one most likely to ensure its long-term continuation—is that green buildings tend to produce better economics for real estate owners and developers. This result carries significant implications for real estate investors who wish to remain competitive amidst a changing marketplace."

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