GREEN - a new niche

Diagram from http://www.newenglandmetalroof.com/

In business, people always talk about the need to find and fill a niche in order to be successful.  In fact, many of the fastest growing and most profitable businesses in the US are succeeding because they have discovered a profitable niche. 

Has a new niche grown out of the green building movement?  Currently, GREEN real estate concepts are influencing every aspect of real estate from building and development (as shown in the conceptual drawing) to insurance and lending.  GREEN concepts, like anything else, are more appropriate for some aspects of the real estate industry than others.  There are some areas such as appraisal that must firmly grasp how green features influence value so that these features are incorporated into the overall assessment of a property's value.  Until this happens, it will remain challenging for lenders to complete financial analysis and underwrite loans for green retrofits and new green construction. 

Suburban Greenscape

In spite of the challenges, most segments of the real estate industry have already begun incorporating GREEN concepts into their existing business model, or they are grappling with how GREEN concepts fit into their business model.  There are janitorial companies, for instance, that market GREEN cleaning services and insurance companies such as Fireman's Fund that have embraced the idea of meeting the needs of owners of green buildings.  Building design and landscape design firms are front-runners in the advancement of green building and sustainable development ideas.  There are also several major electric providers in the US that sell electricity that has been mostly or wholly produced from renewable sources of energy such as solar and wind (see video below).  Clearly, there are endless opportunities here to provide a good or service with a minor or major component of GREEN.

To satisfy the end consumer's demand for greener products, new lines of products are being created all the time.  Just imagine all the products that contain VOCs or volatile organic compounds and you will begin to see the endless possibilities for new products from carpet and paint (see video below) to solar panels and dimmer switches.  There are many ways to appeal to consumers who are interested in maintaining a GREEN lifestyle.  Perhaps the best starting place is to become educated and obtain a GREEN designation. LEED offers the following professional green designations:

• LEED Green Associate
• LEED AP BD + C (Green Building Design plus Construction)
• LEED AP ID + C (Green Interior Design plus Construction)
• LEED AP Homes (Residential Green Building)
• LEED O + M (Operations and Maintenance
• LEED ND (Neighborhood Development)

As the GREEN trend goes mainstream, most companies in the real estate industry will find it necessary and beneficial to embrace GREEN concepts on some scale.  Developing a GREEN niche is not only good for the environment, it is also good for business.