Green Retrofitting: A Major Shift for the Real Estate Market
Photo by Ricardo Gomez Angel via Unsplash
Introduction
Last fall, the European Commission unveiled a new energy efficiency strategy called ‘Renovation Wave’ that focused on the decarbonization of HVAC, tackling energy poverty, and renovating public buildings such as schools, hospitals and administrative buildings to be more green. The initiative was set to help renovate up to 35 million buildings and create up to 160,000 green jobs. Initiatives like this are only becoming increasingly popular within the rela estate industry,which includes a new wave of green retrofitting. Frans Timmermans, Executive Vice-President for the European Green Deal, sums it up in this statement: “We want everyone in Europe to have a home they can light, heat, or cool without breaking the bank or breaking the planet.”
What is Green Retrofitting?
A green retrofit is any refurbishment or renovation of an existing building where it’s goal is to reduce the carbon emissions and environmental impact of that building. Some examples of green retrofits are solar panels, green roofs, and water efficiency technologies. However, these are just a few examples of green improvements; for almost any infrastructure within real estate, there is a green retrofit of it.
Advantages of Green Retrofitting
Energy Savings and Efficiency
As energy prices continue to rise, the benefits of energy efficiency are becoming increasingly important. Green retrofitting is the perfect way to take advantage of energy efficiencies and savings. Although there is an initial upfront cost associated with green retrofits, the energy-saving costs are typically lower than non-retrofitted utilities. This benefit can come in the form of all types: heating and cooling units, green roofs, building envelopes, and more. In the long-run, the value added from green retrofits outweighs the initial cost of the renovation and can be vital to the longevity of the building, both in terms of increased real estate value and lowered costs.
Corporate Improvements
When thinking about green retrofits, building standards are especially improved in commercial buildings. Studies have shown that green retrofits can impact employee morale and productivity through the increased health benefits associated with the retrofitting process, such as clean air and more greenery. In fact, in these studies, the executives’ main motivations for doing green retrofit were improving the indoor air and environmental quality, demonstrating corporate environmental commitment, and improving employee productivity. The positive impact that green retrofits have on the employees only increase the incentive for commercial building owners to engage in green renovations.
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Environmental Impact
The environmental impact of green retrofits can span across various categories. Green retrofits can reduce carbon emissions, improve air quality, and so much more. Because the environmental impact of popular building materials, like concrete, are so taxing on the environment, measures need to be taken in order to fix the detrimental impacts of real estate’s large carbon footprint. Green retrofitting can help with that. By shifting away from materials that are bad for the environment, green retrofitting is the right choice for making the most positive environmental impact on pre-existing buildings.
Conclusion
Green retrofits are more accessible than ever. The technologies needed to successfully renovate buildings are constantly evolving and becoming cheaper every day for real estate owners, both residential and commercial. As the incentives for green retrofits increase, developers and contractors are becoming more well-versed in the necessities of green construction. Although zero-energy buildings are the ideal way to participate in green real estate, they largely apply to new consutrctions. Thus, green retrofits are perfect for getting similar benefits as these zero-energy buildings but with pre-existing buildings.
