Have you ever wondered why some companies choose to “green” their facilities while others remain content operating at the status quo? While the reasons are varied and plentiful, our experience tells us there are a number of common drivers behind emerging sustainable strategies including:

Public Perception – As the environment becomes a central issue, companies will have to focus more on sustainability in order to strengthen their brand image.

Customer Requirements – Not only are OEM’s being driven by the consumer market to market greener products but, these drivers are being cascaded down to the supplier base. Increasingly, suppliers have to focus on greener product development and end to end business process.

Financial & Insurance – As capital availability becomes tighter, financial and insurance companies are scrutinizing loans and underwriting closer. The industry will look closer at assets that maintain or appreciate in value and or align with their own sustainability positions.

Lower Operating Cost – A key question, is maintaining a green asset more than a non-green asset? In the majority of the cases green assets can reduce real estate operating cost by as much as 10%.

Maximize Asset Value – A key issue that real estate executives are facing in today’s market is maintaining or increasing real estate value. In some cases green assets are valued between seven to eight percent higher than non-green assets. Green assets also hold higher occupancy rates making them a more desirable real estate decisions.

Return on Investment – As companies look for ways to shore up their income and balance sheets, investments in green assets can increase overall ROI.

With tighter economic conditions upon us, companies are either faced with ignoring sustainability drivers or embracing them and at what cost. Companies that chose to ignore sustainability issues often find themselves with assets that are costlier to operate. And in some cases those real estate assets are valued lower and are harder to market when surrounding markets are going green. What are you doing to make sure that you are not operating at status quo?