At Green Squared, our tagline is “Green that makes cents.” Obviously, that is a play on “Green that makes sense.”

Why?

Well, we only recommend retrofit projects that payback in a short time frame in operating savings. Those operating savings result in increased Net Operating Income (NOI) for commercial building owners. That increased NOI results in increased property value.

How?

The income approach is one of three primary approaches to appraising commercial properties. In the income approach to appraisal, the value is determined on the stream of NOI that an investor will receive as a result of owning the property. As such, the retrofit that lowers operating costs, increases NOI, and increases appraised value.

There are multiple studies supporting this benefit in the real world.