609.275.8484
Commercial building retrofitting that targets energy efficient improvements is becoming an increasingly popular niche. Regardless of the fact that some incentives like the green building tax deduction have expired, investors interested in such projects can still discover excellent financing options.
According to 2013 statistics by the Center for Sustainable Systems at the University of Michigan, commercial buildings contributed to 18 percent of the US electricity consumption. At that time, there were more than 5.64 million commercial buildings in the country – an increase of 46 percent in comparison to figures for 1979.
These are just some of the reasons why so many investors are beginning to explore commercial building green retrofitting. Here are several other reasons why such projects are becoming increasingly lucrative.
Available Financial Tools
Though a green building tax deduction used to be available in the years until 2013, its future is still uncertain. Regardless of the fact, entities interested in commercial building retrofitting can still benefit from financial tools and incentives.
Many entrepreneurs and lenders have provided financing options for the execution of such projects. Energy efficiency retrofitting increases the value of the commercial building and decreases certain kinds of expenditure. As a result, such improvements contribute to even better financial results in the future.
Tenants are Looking for Energy Efficiency
Entities that lease commercial building spaces are looking for sustainability improvements. This is why the demand will drive green retrofits mainstream and make many investors opt for the execution of such projects.
Many companies already understand the importance of adopting energy efficient, green corporate practices. The features of the commercial space that the company occupies will play a key role in the establishment of this green business reputation. The fact that businesses are consciously looking for energy efficiency features will affect the niche tremendously in the years to come.
Global Acceleration
Green retrofitting of commercial spaces is not taking place just in the US. The trend has gained international momentum and the commercial sector appears to be the most promising one.
According to a 2012 McGraw-Hill Construction study, the global construction market has started to shift. Green building is no longer being seen as a tiny niche, it has become a legitimate business opportunity. Many construction companies from all parts of the world reported that client demand and market demand have become the two driving forces for commercial building retrofitting.
The report suggests that nearly 50 percent of the construction companies questioned have plans to execute green renovation work by 2015. The United Kingdom is one of the countries where green retrofitting is most popular – nearly 65 percent of the companies planned the execution of such a project by 2015.
Rapidly increasing popularity and numerous new developments in the niche could accelerate the adoption of a new green building tax deduction or the extension of the previous incentive. Only time will tell what kind of stimuli are investors going to enjoy in the future. The numerous benefits that green retrofitting projects bring already, however, have led to rapid construction market transformation and dozens of new developments in the sector.
Steve Nanos
Latest posts by Steve Nanos (see all)
- LED Lighting – A Great EPAct 179D Qualification Possibility - February 3, 2015
- 45L Credit Requirements for Begun Constructions - January 29, 2015
- Can Section 179D Incentives Help Businesses Save a Lot of Money? - January 27, 2015
