Green Buildings Expected to Receive Lower Financing
Since this is my blog, I guess I can toot my own horn about an article on GlobeSt.com discussing green buildings. From the article…
“At this point it is my experience green buildings are receiving the same financing they would get for any high quality building with a good tenant,” Jim Amorin, president-elect of the Appraisal Institute, an association headquartered in Washington, DC and Chicago, tells GlobeSt.com. “What I think will change is that lenders will start assessing a premium on financing for any building that is not designed to green standards.”
He likened it to when air conditioning was first introduced. “At first buildings that came equipped with air conditioning were seen as luxury developments. But within a short period of time any building that didn’t have it was considered functionally obsolete.”
The full article can be found here