LEED for Economic Sustainability

Milhaus is currently developing the first LEED apartment building in downtown Indianapolis. We’re learning a lot about the value of the rating system and the benefits to both future residents and us as long term owners. The USGBC system has changed quite a bit in the last few years, but its still far from what we would like to see for multi-family properties.

Anyone that has ever worked with a pro forma understands the realty that cap rate and NOI create a project’s value. At Milhaus, we think beyond this simple calculation, because we know it does not tell the whole picture. In a real estate market that is quickly evolving into one in which many projects are now LEED or “green,” we are not too far away from the time that every new project should fit this criteria. More and more people will want to live in buildings located in walkable neighborhoods near their work, places to eat, and entertainment venues. They want them to be energy efficient and help them feel good about living there.

Our projects will have a better future value simply because of the fact that they will still be relevant twenty years from now. It is the projects that are not built with sustainability in mind that will become obsolete. We’re really building green not just because it is environmentally responsible, but because it is economically sustainable as well.