News Analysis

New Index Could Bring New Investors to Green Building

December 31, 2012

investable green property indices could open the floodgates to new sources of capital for millions of square feet of building stock, according to the U.S. Green Building Council (USGBC), which partnered with investment analyst FTSE and the National Association of Real Estate Investment Trusts to lay the groundwork. The new indices will allow real estate investment trusts (REITs) to target specific green property types, and the same metrics will help financial analysts compare and fund REITs based on objective sustainability rankings.

Some studies have suggested that green commercial buildings charge more rent, have higher occupancy rates, and sell for higher prices, potentially improving their long-term financial performance (see “Non-Green Office Buildings Sacrifice 8% in Rent Revenues,”