Assessing the value of a building may involve the analysis of benefits associated with sustainable real estate, and the impact of sustainable performance on rents, lease term, profitability … The study analyzes these mechanisms and makes recommendations for assessors and certification bodies.
Health, welfare and productivity of occupants of office buildings are closely linked and that link is now proven. The report uses nearly 80 scientific references that demonstrate this link, much more strategic for « green » buildings that energy savings.
According to the authors, initial five steps will ensure asset owners and managers have the right information and incentives to significantly increase the number of energy efficiency retrofits: Ensure executive awareness of the business case, Measure and benchmark building energy performance, Set portfolio energy efficiency targets, Link asset manager compensation to energy performance, Align lease clauses to enable retrofits (green leases). The last two steps will increase an investment manager’s chances of getting energy efficiency retrofits approved and financed: Include impact on asset value in investment analysis, Take a portfolio approach to determine next steps
The authors investigated the relationship between the energy performance ratings, as measured in Energy Performance Certificates (EPCs), and the sale prices of residential properties in England. As expected, the price difference increases as EPC performance improves. They estimated that, compared to dwellings rated EPC G, dwellings rated EPC F and E sold for approximately 6%, dwellings rated D sold for 8% more and dwellings rated EPC band C for 10% and A/ B sold for 14% more.
Pyvo Gary, Fisher Jeffrey D. Investment returns from Responsible Property Investments: Energy Efficient, Transit-oriented and Urban Regeneration Office Properties in the US from 1998-2008. March 2009.