Why You Should Market the “G-Factor”

Marketing the “G-Factor” to potential and current residents is critical in order to maximize the profitability of your energy efficient improvements.  Here’s why:

Market Differentiation

Today’s residents are not always looking for a new apartment or condo based on pure economic reasons; rather they are looking for a community that shares their values.  Yet most multifamily buildings still offer basic value to consumers who are longing for something more than a traditional living environment.  By spending the resources to market the “G-Factor,” you can distinguish your multifamily building from other traditional complexes by emphasizing your commitment to the environment.  This is a key feature that can help you not only acquire new tenants who are looking for something extra or unique in a living environment but can help retain existing tenants who feel a tremendous sense of community and pride about being associated with a cohesive green community.

Reputation for Quality

Maintaining an energy efficient green building takes persistence and effort.  More than anything, it represents quality and specialized maintenance.  By marketing the “G-Factor,” you are not just marketing energy efficiency but you are also representing your commitment to quality and care.  These are critical factors needed to acquire and retain tenants.

Healthier Living Environment

As a corollary to the quality component, going green can improve the indoor air quality of your multifamily building.  For example, the United States Environmental Protection Agency (EPA) reports that the air in new homes can be ten times more polluted than outdoor air.  This harmful indoor air quality is caused by the slow and subtle release of gases from chemicals found in many common building materials as well as mold and mildew that forms in homes as a result of due to inadequate heating and cooling systems.  In addition, much of your home, such as kitchen cabinets and shelving, is made from particleboard that is constructed with formaldehyde-based adhesives.  Unfortunately, this formaldehyde adhesive is a suspected human carcinogen and can slowly leak gas into the air.  In addition, the “new home” smell is actually other potentially dangerous volatile organic compounds, used in common building materials, that is releasing into the home.  Green building products present an excellent alternative to harmful traditional building materials.  For example, solvent-free adhesives used in green flooring and countertops can eliminate many of the suspected and known human carcinogens.  In addition, now available are paints, varnishes, and cleaners that do not contain the volatile organic at costs comparable to conventional products.  In addition, more and more builders and remodelers are using building materials made out of natural materials such as straw-bale, rammed earth, adobe and cob.  By going green, you can promote not only a higher quality multifamily but also a much healthier environment as well.

Media Attention

While more multifamily buildings are beginning to see the virtues of going green, these types of complexes are still in the minority.  By marketing your building as a green complex, you raise the likelihood of media attention as you are the forefront of modern construction.  What’s better, most of the time this media attention is free and helps tremendously to spread the word about your multifamily building.

Investment Opportunities

One final advantage of marketing the “G-Factor” relates to the possible acquisition of your multifamily building.  As we have shown, incorporating energy efficient technologies into your multifamily building can dramatically change the economic value of the building by improving vacancy rates as well as lowering the building’s operating expenses.  These types of multifamily buildings are excellent investment vehicles for real estate investment trusts or other investors who are looking for real estate with tremendous cash flow upside.  By marketing the “G-Factor,” you not only help the economic value of your multifamily building but also raise your profile to those investors who might be willing to pay a premium for a building that is economically efficient.