Gradually, industries are moving towards more environmentally conscious technologies and considering green friendly practices. One does not typically think of the construction industry as the most environmentally conscious, which is partly due to the nature of the business, however there is a growing momentum behind Carbon Neutral Developments, and Green Construction.
Just recently, a residential building in Western Australia was highly commended, advertised, and marketed as the first ever Green Star residential building in Australia. Modern times indicate that property developers and builders are in a position to positively influence the environment, whilst profiting from their contribution.
There are several reasons for opting to utilise carbon neutral or green technology. Irrespective of political or scientific debate, a market for carbon neutral developments is growing and producing substantial profits for builders and developers. This profit is accountable to several factors.
Apart from the obvious lower operating costs and health advantages, green friendly developments have become a tenant attraction for both residential and industrial estates. Contemporary best practice is leaning toward environmentally conscious technology, material, and techniques giving a competitive edge to the green developer.
The McGraw Hill Construction Report (2007) found that green developments increase a property’s value by 7.5%, on average, and improved return on investment by 6.6%. It has been noted that green developments:
- Secure tenants more quickly;
- Command higher rents and prices;
- Attract more grant funding and subsidies;
- Enjoy lower tenant turnover;
- Cost less to maintain; and
- Enjoy inherent advertising and marketing mechanisms.
Increased community attention on green and carbon neutral developments is creating a niche market in the construction industry. While carbon neutral and green developments may involve increased capital expenditure, the advantages yield high short term returns and make for long standing investments and contributions to a sustainable environment.
Bell Legal Group can assist in any building or construction endeavour you engage, whether green or otherwise. We can assist you to transform current projects to be more carbon neutral or green, and we can help guide your developments through the benefits of carbon neutral developments.
For more information please contact Rob Ffrench, Partner in our Commercial and Property Law department.
The contents of this article are for general information only. It is not intended to be a comprehensive statement of the law, and should not be relied upon as such. If advice on the law is required, it should be sought on a formal professional basis. Bell Legal Group excludes liability for loss suffered by any person resulting in any way from the use of, or reliance on information presented in this article.