Although building new buildings to green standards is taking off, retrofitting existing buildings to increase energy efficiency and reduce energy-related pollution is poised to boom, according to a new report conducted by McGraw Hill Construction, a leading provider of project and product information to industry news, trends and forecasts.
The report, entitled Green Building Retrofit & Renovation: Rapidly Expanding Market Opportunities through Existing Buildings, highlights the emerging market for green renovations from the perspectives of owners of existing commercial buildings and commercial tenants. Through profiles of 20 projects, the report looks at the economic impact of green retrofits and identifies specific retrofit and renovations going on in the market.
Released at the Green Retrofit Conference held Oct. 21-22 in New York, green building currently represents 5-9 percent of retrofit and renovation market activity by value — a $2-4 billion marketplace for major projects. McGraw Hill forecasts the market for major retrofit projects to grow to 20-30 percent in the next five years, which by then will be a $10-15 billion market.
The report predicts that in the next 10-15 years, half of all retrofits and renovations will be green. Owners and tenants who have undertaken or experienced green retrofits are likely to do more green retrofit projects, it says. Most commercial property owners expect to see a return on their green investment within 10 years, it notes. Energy efficient lighting or natural lighting are the most frequently applied features, the report says. Most also install more energy-efficient mechanical and electrical systems.
"It is critically important that 20-30% of all retrofit and renovation activity will be green in five years because 98% of our buildings already exist, and they represent some of our most inefficient buildings," said Harvey Bernstein, vice president of global thought leadership and business development, McGraw-Hill Construction. "This is a $10-15 billion market opportunity in major projects alone, and it will significantly contribute to the expansion of green products and services, which will have a long-term impact on our future economy and ability to build green."
The report was produced with support from Autodesk, CB Richard Ellis, Siemens, UL Environment, Inc., and the U.S. Green Building Council.
