For decades now, property investors have been trending toward “green” properties. High-end, environmentally-friendly buildings that are energy-efficient do much more than add equity value. Property investors understand that green properties attract younger and more affluent tenants who are willing to pay a little more in rent for peace of mind. But what are green properties, and what are the trade-offs?
Certified Green Properties in NYC
Green certifications for real estate have become a huge industry over the years. However, as with anything, not all certifications are created equal, and the cost to investors can vary from a few hundred dollars on up to many thousands. Perhaps the most well-known certification for green properties is from the Leadership in Energy and Environmental Design (LEED). Green properties with LEED certification are structurally sound, and leave a small footprint in carbon dioxide emissions and waste, and need to meet certain energy and water efficiency standards. There are many other programs, that are not as well known, and issue in-house certifications with little or no oversight, so investors should do their research before pouring a lot of money into a certification that is not recognized by many.
Shifts in Public Perception
While commercial real estate investors in NYC have been making a long push for green properties, tenants only recently started to seek them out. Green properties were initially treated with skepticism, and prospective tenants thought the term was just a marketing phrase used to justify higher rents. With the advent of HGTV and similar networks, average people have a much better understanding of what makes a property green and sustainable and are willing to put money towards a property with a recognized certification. Because of this change in perception, commercial real estate investors throughout NYC are getting existing properties ready for green certification or building entirely new green structures. While the building materials and technology that goes into a green property is usually a greater expense than regular construction or renovation, investors in NYC are taking advantage of the great tax incentives offered by Opportunity Zones to help renovate entire communities, specifically with multifamily properties.
Express Commercial Financing provides funding solutions for NYC investors looking to add green properties to their portfolios. From renovations and construction to certification, our team can provide the financing you need. Contact Express Capital Financing today to get started.