Despite the recession, the push for green buildings continues. But is green a justifiable expense when companies are struggling to stay alive in the financial bloodbath?

A fascinating study Doing Well by Doing Good? Green Office Buildings, from academics at the University of California and Maastricht University in the Netherlands has found a pretty strong compelling reason why it is important. Building owners can actually make money out of it in a tough economic climate.

According to the study, buildings with a "green rating" command rental rates that are at a 3% premium per square foot than otherwise identical buildings. If there is a green building and a non-green building in the same neighborhood, the green building will command a higher rental premium. Surveying 10,000 buildings around the United States and looking at their rents and selling prices, the study also found that premiums in effective rents came in at more than 6% higher.

Even more interestingly, the selling price for green buildings was about 16%, adding about $5.5 million in market value. Conversion of standard buildings to green status would add $5.7 million.

Why the premium? Because it is connected to the building's energy saving characteristics. An increase of 10% in the site energy
utilization efficiency of a green building is associated with a twenty basis point increase in effective rent and $1 of energy savings yields $18 in increased market value.

This study is the first credible evidence on the economic value of the certification of green buildings in the commercial property sector and it has enormous implications in this economic climate. It means that businesses seeking to maximize profits will have to start looking at increasing the energy efficiency of the buildings. Otherwise, they won't be competitive. It also means non-green buildings will become obsolete a lot quicker.