I just read an article in Jetson Green where he talks about Wells Fargo’s recent investments in LEED certified buildings, and advocates more bank lending for green buildings. This would be wonderful, but I don’t think banks are the best vehicle for pushing green building… their business tends to be too diffuse, and not concentrated enough in the real estate sector.
The companies who can really make a difference, and quickly, are Real Estate Investment Trusts(REITs), which allow individual investors to pool their money and invest in property under professional management.
I don’t currently advocate investing in the real estate sector; I feel the real estate market is peaking or has peaked. Better to wait a few years, and buy when property is cheap. That said, here are some REITs I’ll be looking at when I feel it’s time to get back in to real estate:
Arden Realty, and Equity Office Properties, both of which have been singled out by Innovestas green REITs. Trizec Properties, Inc., which is also becoming more vocalabout its green record. According to Innovest, REITs which were active partners in DOE’s Energy Star program outperformed non-active partners and non-partners by 18% over the period from June 2000 to June 2002, so another good place to look would be an attempt to determine which REITs are corrently or are becoming active partners in Energy Star.
Related article about Trizec.