Green building currently accounts for five to nine percent of the retrofit and renovation market activity by value, which equates to a $2 billion to $4 billion marketplace for major projects, according to a new report from McGraw-Hill Construction. By 2014, this share is projected to grow to 20-30 percent, making it a $10 billion to $15 billion market for major retrofit projects, according to the SmartMarket Report.
The report, Green Building Retrofit Renovation: Rapidly Expanding Market Opportunities Through Existing Buildings, profiles more than 20 projects that provide insight into the growing green building industry. Researchers say that market opinion and indicators suggest much higher levels of activity long-term for retrofits and renovations overall, which is expected to reach a tipping point in 10 to 15 years. At this time, half of all retrofits and renovations will be green, according to the report.
The report also reveals that owners and tenants with green retrofit experience are likely to do more green retrofit projects. Seventy percent of owners who have engaged in green retrofit or renovation activities are planning to continue to do so for over 15 percent of future projects and 24 percent will do so on over 60 percent of projects, according to the report.
Tenants, on the other hand, fall into two extremes: one-third are committed to green retrofits for over 60 percent of projects, while 17 percent are not yet committed.
Another finding shows that the downturn is encouraging the adoption of energy- and water-efficient practices in renovation projects. Sixty-two percent of owners expect to recoup their investments for energy-efficiency improvements within 10 years.
The most popular projects include energy-efficient lighting or natural lighting. Nearly all respondents (92 percent) also report installing more energy-efficient mechanical and electrical systems, according to the report.