How Property Management Software Can Support Green Building Adoption
Today the push for sustainable alternatives in housing products and services has increased tremendously. From tenants to multifamily apartment operators, sustainable housing can provide significant cost savings. Becoming an eco-friendly building requires a lot of time and upfront costs. With increasing interest in green building adoption and green certifications, automation can help property managers and real estate investment trusts (REITs) streamline the processes and reduce the manual effort that typically accompanies the shift to sustainable housing.
Green building adoption is on the rise
For businesses and property investors, ESG practices are essential to the future of business sustainability. As companies continue to recognize the importance of ESG reporting, 80 percent of institutional investors have made it a component of their investment strategies. Investors want to ensure that their investments will stand the test of time, with green-certifications companies reassure their concerns.
The EPA’s ENERGY STAR rating, the National Green Building Standard maintained by Home Innovation Research Labs, and the U.S. Green Building Council’s LEED certification are the top 3 programs in the U.S. According to the Multifamily Green Building Adoption Index, a total of 251,763 units, representing 3.3 percent of the 7.7 million multifamily properties (with 50 units or more) within the top 30 markets, have already been certified as “green. As consumer demands and federal programs continue to push for upgrading infrastructure, it’s expected that more properties will become green-friendly in the future.
Capital markets recognize green certifications
Green building certifications are on the rise in the multifamily market. As they become more widespread in the U.S., capital markets have taken notice. With a market that could be worth $2.36 trillion by 2023 globally, green building adoption serves to meet the needs of both the environment and financial markets simultaneously. Research shows that commercial mortgages collateralized by green-certified office buildings have significantly lower default rates, contributing to delivering several sustainable development goals.
With a market that could be worth $2.36 trillion by 2023 globally, green building adoption serves to meet the needs of both the environment and financial markets simultaneously.
Fannie Mae, a leading source of mortgage financing in all markets, is a perfect example of preferential pricing for green building adoption. Fannie Mae recognizes 40 certifications for new and existing buildings across 13 organizations.
Automating data collection can reduce green building adoption costs
A significant part of the green building adoption process relies on collecting data needed to determine if your building qualifies. With data collection, property owners can identify what energy and water efficiency improvements are required to make the property more eco-friendly. For multifamily properties or commercial buildings with many sub-metered tenants, aggregating whole building data can be particularly challenging. The process requires facilitating benchmarking of all energy meters, and service points are “rolled up” to calculate a building’s complete and accurate energy usage.
With data collection, property owners can identify what energy and water efficiency improvements are required to make the property more eco-friendly.
In areas where the utility service provider cannot provide the necessary data, gaining automatic and direct access to residential and commercial tenants’ accounts is a reliable alternative. Automated access offers a cost-effective and efficient way to collect accurate and timely data.
Automating data collection can help to decrease costs that come with green building certification processes. With Urjanet’s digital utility data API, your company will have full access to data needed to support green building adoption goals. To get started, speak with one of our data experts today.
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About Ma-Keba Frye
Ma-Keba Frye is a Content Marketing Associate at Urjanet, assisting with content development and execution. When she's not writing, she enjoys reading, listening to music, and volunteering.