Green Building Trends

In 2005, green building was a small, burgeoning market, approximately 2% of both nonresidential (commercial and institutional) and residential construction, valued at a total $10 billion–$3 billion for nonresidential and $7 billion for nonresidential. Since that time, green building has expanded rapidly due to a number of factors such as growing public awareness of green practices, heavy increase in government interventions and recognition by owners of the bottom line advantage. In fact, green building has grown in spite of the market downturn. Green seems to be one area of construction insulated by the downturn, and we expect green building will continue to grow over the next five years despite negative market conditions to be a $96-$140 billion market.

Once an emerging trend, green building has become a growing part of today’s construction industry. With the down market, it has become even more important for industry players to capture the opportunity created by the demand for more sustainable buildings. By 2013, McGraw-Hill Construction estimates today’s overall green building market to more than double, reaching between $96 -$140 billion versus $36-$49 billion today for residential and nonresidential buildings.

“Essentially, green building has become an area with huge opportunity and even greater potential to help tackle unemployment through green jobs, and address other societal issues,” Bernstein says.

There may also be an increased push from the consumer market as well. MHC also found that home buyers are willing to pay more for a green home, and home builders are more insulated from the down market as a result of building green. The USGBC reports that ten national retailers are now including LEED elements into their standard store designs. Retail is one of the most difficult real estate categories to build green, yet it is the class where sustainability measures are most visible to a company’s customers.

Whatever the reasons, Bernstein says the fact that the market has accelerated so quickly is important.

“By the end of the year, we expect that nonresidential green project starts will be 10 percent to 12 percent of the market. This is compared to only two percent penetration just two years ago,” he says. “That is a story that the industry needs to know as they create their own long-term marketing and growth strategies, so they know how to plan moving forward.

Sunsational Green LLC

sunsationalgreen@gmail.com 575-387-6442

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