McGraw-Hill: Green Building to Triple by 2013

Even as a deepening recession and credit freeze have curtailed real estate development, green building construction starts increased fivefold between 2005 and 2008, McGraw-Hill Construction reports.

McGraw-Hill expects the domestic green building market to triple by 2013, reaching up to $140 billion in construction spending. Growing public awareness, government regulations, and bottom-line advantages are helping fuel green building's surging popularity, the company said.Much of the green building activity will take place in retrofits and renovations since many buildings are aging and inefficient, McGraw-Hill said. Green building now comprises 5 percent to 9 percent of the market, but that share could reach 30 percent or $15 billion in annual spending within less than five years, the company added.

"It is critically important that 20 percent to 30 percent of all retrofit and renovation activity will be green in five years because 98 percent of our buildings already exist, and they represent some of our most inefficient buildings," McGraw-Hill Construction Vice President of Industry Analytics Harvey Bernstein said. "This is a $10 billion to $15 billion market opportunity in major projects alone, and it will significantly contribute to the expansion of green products and services."

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