According to a joint study released by Deloitte and Charles Lockwood, a growing number of companies are implementing green retrofits of their buildings to save money, improve productivity, lower absenteeism and healthcare costs, strengthen employee attraction and retention, and improve their corporate sustainability reports and brand equity – all at a relatively modest cost. However, timing is important for companies seeking to use green retrofits as a point of competitive differentiation. The earlier a company performs a green retrofit, the more differentiation it stands to gain, as we believe that the increasing interest in green building among businesses and lawmakers will soon make green construction practices mainstream.
Green buildings offer their owners and tenants a number of bottom-line benefits, including reductions in water and energy use and costs; opportunities with respect to tax credits, permitting, and other regulatory incentives; and greater worker productivity and satisfaction, improved brand image, and better community relations.
A building doesn’t have to be new to be green. An empty building can undergo a top-to-bottom green renovation that incorporates green design, building products, and technologies. Or companies can choose a green retrofit, which enables them to introduce green benefits into their existing occupied workplaces at a reasonable cost and with only minor impact on their day-to-day operations. Companies that cannot afford to construct a new green building, or that cannot afford the cost and disruption of moving to a green building or of undertaking a top-to-bottom green renovation of their existing conventional workplaces, may find that green retrofits are a practical way to improve their sustainability, reduce their greenhouse gas emissions, and reap the many benefits of green workplaces.
Deloitte believes that organizations taking this overly cautious approach should reconsider. We believe that within the next three years, companies that do not have green workplaces will be at a competitive disadvantage from higher operating costs, lower productivity, declining attraction and retention of skilled workers, and an increasingly negative brand image.
In addition, owners and investors in conventional buildings will be less able to compete in the marketplace as green buildings become tenants’ preferred choice. An April 2008 study of 1,300 buildings by the CoStar Group found that LEED-certified buildings are commanding rent premiums of $11.24 per square foot over their conventional building competitors, and they have a 3.8 percent higher occupancy rate. LEED-certified buildings also sell for an average of $171 more per square foot than their conventional competitors.
Finally, the tax and regulatory incentives now available in many areas to encourage green retrofits are likely to disappear as more cities institute energy-efficient green building construction and renovation regulation and as more organizations adopt green construction, renovation, and retrofit practices as a matter of course.
Companies pursuing value through green retrofits have good reason to act sooner rather than later.
FREE Federal Cash For Your Green Building:
A qualified individual must be properly licensed as a professional engineer or contractor in the jurisdiction in which the building is located, not be “related” to the taxpayer taking the deduction (as defined by the IRS), and represent to the taxpayer in writing that he or she has the requisite qualifications to provide the certification. The certifier must also use IRS qualified computer software. Software must be on a list of products approved by the U.S. Department of Energy.
To see if your property qualifies and for your FREE initial analysis of your potential benefit so that you know in advance what your benefit will look like, click the following link:
FREE Green Building Tax Deduction Analysis
About SourceCorp:
Celebrating our 25th year in business, SourceCorp specializes in Green Building Tax Deductions, LIFO Accounting, R&D Tax Credit Studies, and Cost Segregation Studies. With a team of nearly 70 professionals and with offices located throughout the country, SourceCorp helps clients realize unparalleled experience, services, and trust. SourceCorp serves many of the nation’s most prominent CPA firms, Associations, and Fortune 1000 companies. For more information, please call 817.732.5494 or visit SourceCorp Professional Services.
Full Deloitte Report: Click Here For PDF
