The retail and hospitality sectors are increasingly investing in green building projects with growth particularly evident in the past two years, according to a study released by McGraw Hill Construction in partnership with Waste Management.
The percentage of retail owners that are “highly involved” in green building — a category that means more than half of their new buildings are green — jumped from 18 percent in 2011 to 38 percent in 2013, the report says.
Green Retail and Hospitality: Capitalizing on the Growth in Green Building Investments projects that number will rise to 52 percent over the next two years. The study defined a green building project as one built to LEED or another recognized green building standard, or one that is energy-efficient, water-efficient, and improves indoor air quality and/or engages in material resource conservation.
Hotel owners also have shown a willingness to invest in green building projects. The percentage of “highly involved” hotel owners grew from 28 percent in 2011 to 48 percent this year. Growth is expected to rise to 62 percent by 2015, according to the report.
The report, which is based on a study of 79 retail, 30 hotel and 22 restaurant owners, found growth in green building hasn’t been confined to new construction activity. Nearly two-thirds of retail and three quarters of hotel owners also expect to invest in green operations and maintenance by 2015.
A number of incentives, including an increase in asset value and decrease in operating costs, have helped drive the growth in green building, the report says.
Hospitality owners that invested in green building experienced an 11 percent increase in asset value, a 14 percent rise in the building’s return on investment and a 1 percent decrease in annual operating costs. Retail owners had similar benefits with a 7 percent increase in asset value, 8 percent building ROI and 8 percent drop, on average, in annual operating costs.
The market for green construction materials has grown in step with the rise in these projects. A report released by Navigant Research last month forecast the worldwide market for green construction materials will grow from $116 billion in 2013 to more than $254 billion in 2020.