Energy
IFMA Foundation's Study on Sustainability and Energy Efficiency in CRE
Sep/02/2010 06:29
As green building and sustainability have grown beyond a niche market, it becomes critical to assess and understand decision points and the variety of customer motivations and priorities. The Economics of Sustainability in Commercial Real Estate (IFMA Foundation and Manhattan Software, July 2010) by Kristian Peterson and Ross Gammill is an in-depth analysis of the incentives and motivations related to sustainability and energy efficiency in commercial real estate. The research examines the various decision making parties throughout the real estate management chain in existing office buildings.
In addressing the question of why more existing buildings have not been retrofitted, the study research was based on a qualitative study including interviews and a quantitative analysis utilizing financial modeling.
From the Executive Summary
"The white paper concludes that financial considerations are the primary drivers behind
real estate investment decisions. Secondary factors that drive investments in energy efficiency
improvements include: fostering a positive public image, winning new business and focusing on
environmental responsibility. Recommendations to increase investment in energy efficiency are
also provided within the white paper. Increased investment in energy efficiency will result if
managers recognize that energy efficiency projects can decrease the volatility of returns, and
that these returns are maximized by making the investment in energy efficiency prior to significant
lease rollover."
To download the study
email registration required
In addressing the question of why more existing buildings have not been retrofitted, the study research was based on a qualitative study including interviews and a quantitative analysis utilizing financial modeling.
From the Executive Summary
"The white paper concludes that financial considerations are the primary drivers behind
real estate investment decisions. Secondary factors that drive investments in energy efficiency
improvements include: fostering a positive public image, winning new business and focusing on
environmental responsibility. Recommendations to increase investment in energy efficiency are
also provided within the white paper. Increased investment in energy efficiency will result if
managers recognize that energy efficiency projects can decrease the volatility of returns, and
that these returns are maximized by making the investment in energy efficiency prior to significant
lease rollover."
To download the study
email registration required
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