GreenBuild Blog
Sunday, November 01, 2009
Markets for Greening Existing Buildings: Chapter 3 of Greening Existing Buildings
RREEF Research reported in February 2009 its expectation that “major real estate markets—the markets where institutional investors focus their attention—will be pushed even faster to the tipping point where green building becomes the market standard.” The research predicts that older, less-efficient conventional buildings will actually have their market value discounted in the years ahead. Even with the continuing global economic recession, government policies will continue to accelerate the push toward greener buildings, as will tenant demand, especially from corporate real estate executives. There is also “no pronounced indication that major institutions are pulling back from their greening commitments” as investors. In this context, greening existing buildings, especially upgrading energy efficiency, can be seen as a “defensive strategy,” since these less-efficient properties risk “market decay” in the form of lower rents and higher vacancies, “as tenants increasingly migrate to more modern, greener buildings.”
This is an excerpt from Jerry Yudelson’s book, Greening Existing Buildings
To read the entire chapter, click here to download the PDF version.
Click here to order this book from Amazon.com.
Posted by Sky on 11/01/2009 at 09:46 AM
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