03 Apr Unlocking Real-Estate Value by Going Green
Unlocking Real-Estate Value by Going Green
Via Morgan Stanley’s INSTITUTE FOR SUSTAINABLE INVESTING.
Did you know that new green technology could boost asset values of US office buildings by as much as $35 billion. I’m curious as to what the projection would be for the Canadian market, but I’m sure it’s significant. According to their recent report, sustainable technologies can cut a buildings annual expenses anywhere from 3 – 30%.
“These savings can potentially add $3.5 billion-$34.9 billion2 of asset value in the 10 largest US commercial real-estate markets. The report details the yearly utility savings in each of those 10 US cities, which can range from $32 million in Philadelphia to $239 million in New York. That potentially adds $489 million to $4.8 billion of asset value.” -Institue for Sustainable Investing
Take this example provided by the Institute:
“Potential Savings in Five Major Cost Areas From Sustainable Building Management Practices for a Theoretical 250,000 Square-Foot Building in San Francisco”
1 “Green Retrofitting Costs and Benefits: A New Research Agenda”, National University of Singapore and Institute of Real Estate Studies, 2011; accessed on 1/26/2016).
2 Calculated by the Morgan Stanley Real Estate Investing Team (MSREI) using BOMA Experience Exchange Reports, CBRE market inventory data, and Real Capital Analytics market valuations.
3 Calculated by the MSREI team using BOMA Experience Exchange Reports.
Check out the Morgan Stanley Institute For Sustainable Investing Report – Bricks, Mortar and Carbon