Mendoza School of Business

Can green buildings boost your financial performance?

Published: April 13, 2012 / Author: Rob Watson

Ever since the introduction of LEED standards in 2000, the question of whether or not the certification adds to buildings’ value – and how much – has been hotly debated. But evidence is mounting that building certification adds not only to real-estate income, but also to the asset value of real estate. GreenBiz’s Green Building Market and Impact Report, released in November and written by me, summarizes some of the most recent evidence.

Now a very interesting new study from the University of Notre Dame indicates that having buildings certified as green properties may actually increase business in those facilities too.

The first-of-its-kind study, conducted by University of Notre Dame management professors Edward Conlon and Ante Glavas, compared the financial performance of 93 LEED-rated bank branches with 469 nonrated branches, all owned and operated by PNC Financial Services Group.

PNC Bank has years of experience with LEED. THE PNC Firstside Center in Pittsburgh was the first commercial building to get LEED certified back in 2000. Based on the success of that office building, the company quickly decided to embark on an aggressive campaign to certify its branches as well.

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Topics: Mendoza