Efficiency, Green Building and Property Value

 

Energy costs are the single largest expense for commercial buildings.  IMT seeks to develop and deliver new methods and approaches for appraisers and lenders to use in considering the influence of energy performance on commercial and residential property values. IMT works with appraisers, real estate agents and other real estate professionals to increase the recognition of energy costsand energy performance in commercial property valuation.  IMT's work in this area includes research, continuing education for professionals and promoting enhanced methods of documenting and benchmarking energy performance.

 

OUTREACH TO REAL ESTATAE PROFESSIONALS

 

ENERGY EFFICIENCY AND PROPERTY VALUE: LINKS AND RESOURCES

IMT Research

IMT's work, Promoting Energy Efficiency in Property Valuation, began in California and New York.  This research revealed the degree to which energy performance of building features is reflected in common appraisal practices, as well as the implications for building transactions and mortgage decisions.

 

Other Research

There is a growing amount of research on energy efficiency, green building, and property value.  These are some recent papers on the subject:

  • "Investment Returns from Responsible Property Investments: Energy Efficient, Transit-oriented and Urban Regeneration Office Properties in the US from 1998-2008" March 2009 study by prominent real estate professors Gary Pivo of the University of Arizona and Jeffrey Fisher, the director of the Benecki Center for Real Estate Studies at Indiana University.
  • Does Green Pay Off?  July 2008 CoStar academic study finds that ENERGY STAR and LEED-certified buildings outperform their non-ENERGY STAR and non-LEED rated counterparts across the United States in occupancy, sale price, and rental rates.  
  • Doing Well by Doing Good?  Green Office Buildings  January 2009 study by the Institute of Business and Economic Research 
  • Clean Energy and Climate Policy for U.S. Growth and Job Creation: This UC Berkeley study provides an economic assessment of the American Clean Energy and Security Act and the Clean Energy Jobs and American Power Act. It concludes that the country as a whole can gain 918,000 to 1.9 million jobs, and household income can grow by $488 to $1,176, by 2020 under comprehensive energy and climate policy.