Two standard criteria in real estate investment have always been the location and quality of the property. However future investors may add a new criteria and this is looking at how “green” the property is when making a decision to purchase. A recent article in National Real Estate Investor, When Will Sustainability Matter as Much to Investors as Location and Quality?, seems to indicate that day is soon approaching.
Sustainable buildings result in lower operating costs, not to mention long-term savings as the cost of energy continues to rise. Many real estate scions are building green—think of the Durst Organization’s Bank of America Tower in New York City and One World Trade Center, which is being co-developed by Durst and the Port Authority of New York and New Jersey—as well as retrofitting green—most famously, Malkin Properties’ newly refurbished Empire State Building.
So it isn’t surprising that some investors and real estate firms are starting to focus on amassing green portfolios. But when will sustainability become as standard a criterion as location and quality in U.S. investors’ acquisitions? According to many within the industry, thanks to a growing awareness of green as well as several benchmarking programs, that day is almost here.
Why is Sustainable or “Green” Real Estate Getting so Much Attention
From the Sustainable Development Information website they highlight several factors,
Important new evidence implies that green property frequently delivers superior finance returns and market performance. Also, turning green helps property owners and backers ‘future evidence ‘ their real estate to address new energy conservation laws being implemented in the U.S. And around the planet by countrywide, state, provincial and local governments. Green or sustainable real estate is international and undying.
Is Investing in Sustainable Real Estate in Your Future?
Contact the Gaughan Companies and allow us to show you how the Gaughan Advantage and our “Going Green Initiatives” can meet your investment or association management goals.