Green Building Sees Growth, But Fewer Firms Pursue LEED

The reports indicate increasing demand for green building, with 81% of U.S. executives believing that the public expects them to institutionalize sustainability, according to the Dodge report. Worldwide, the MHC trends report found that firms’ top reasons for green projects were largely economic, from client and market demand to lower operating costs; this marks a shift from 2008, when the top reason given was “doing the right thing.” Overall, says United Technologies Corporation president Geraud Darnis, the new emphasis on value “confirms that we now see more pull than push for green buildings.” Firms not identifying any of their work as green still cite doing the right thing as the primary driver in green building and expressed concern with payback on upfront costs.

The green building market has grown tremendously, from $10 billion in 2005 to an estimated $85 billion in 2012, with expectations of exceeding $200 billion by 2016, according to the Dodge report. Globally, 51% of firms told Turner Construction they expect about two-thirds of their projects to be green by 2015—nearly double the percentage reporting that expectation in 2008. Green homes account for approximately 20% of the U.S. residential market—a percentage expected to increase by a few points each year, according to the Dodge report—and one-third of U.S. residential builders expect to be “fully dedicated” to green building by 2016.