Green: It's As Good As Gold

Yesterday, Yahoo News reported that New York City ranks in the top 10 most sustainable cities in the country. The average New Yorker generates less 2/3 less carbon dioxide than those in other states and we're set to reduce our carbon footprint on an even greater scale with a series of 10 major goals and 127 initiatives put forth in Mayor Bloomberg's well-received "plaNYC 2030." Of course, one of the key parts to developing a green city is investing in green buildings. Everyone seems to be following the latest trend--hotels, condos, and retail buildings alike have embraced the challenge to be sustainable, or at least environmentally friendly.

Corporate giants such as IBM, Bank of America, Goldman Sachs, Toyota, and JP Morgan Chase are leading the way by leasing green office space throughout the country. Developers are doing their part by grabbing up partially empty office spaces and giving them an eco face lift. Even the Whitehall Ferry Terminal is now equipped with solar electric glass panels that shell out 52,000 kWh of clean power annually.

This is obviously great for the environment, but it also translates to green in your wallet (thus the enthusiasm from developers and landlords):

Not only do green buildings save an average of 10% in utility costs every year, the property value hikes up by an average of 7.5% and rents run around 3% higher than non-green buildings. While this may not be great news for buyers and renters, it is certainly worthwhile for real estate investors.

For those that invest in the stock market, the Spectra Green Fund has outperformed the Russell 3000 for three years, largely as a result of the fund's investments in clean-energy stocks and green Real Estate Investment Trusts. Stocks in companies that manufacture the green devices that builders rely upon have also been significantly rewarded. The stock price for Johnson Controls, for example, has risen around 40% within the last year alone.

This "green gusto" is not likely to slow down. Millions of dollars of energy-saving and energy-producing plans have already been approved by the city. Green is obviously the new gold standard (pardon the terrible, colorful pun).