Unlocking Real Estate Value by Going Green

New green technology could boost asset values of US office buildings by as much as $35 billion.

Saving the planet is not the only reason why investors should seek out buildings that use green technology. 

A new report, released by Morgan Stanley’s Institute for Sustainable Investing, argues that sustainable technology can cut a typical office building's annual expenses by 3-30%, depending on what US city it’s in.

These savings can potentially add $3.5 billion-$34.9 billion of asset value in the 10 largest US commercial real estate markets. The report details the yearly utility savings in each of those 10 US cities, which range from $32 million in Philadelphia to $239 million in New York. That potentially adds $489 million to $4.8 billion of asset value. 

“This analysis highlights tangible ways in which sustainability can help improve best practices, potentially leading to reduced costs and added value for investors, while creating benefits for owners and communities alike,“ said Audrey Choi, CEO of the Morgan Stanley Institute for Sustainable Investing.