Commercial real estate pros are most willing to pay a premium for on-site renewable energy generation and smart technology that adjusts building operations to reduce environmental impact, according to a new yet-to-be-released survey from CBRE.
"Features that reduce energy consumption seem to be the environmental building feature that is under consideration the most when reviewing a deal," the firm's analysts note in a preview of the report, which surveyed 500 CRE market participants and will be available next year. "Almost half of respondents would seek a discount or walk away from a deal altogether (negative impact) if a building lacked features that reduce energy consumption. Green building certification and buildings that have superior resilience to the effects of climate change also made the top five list."
Thirty-five percent of respondents said features that reduce energy consumption would be positive to valuation if present, while 49% said a lack of such features would have a negative impact or would be a dealbreaker. Forty-five percent said green building certification would have a positive impact while 33% said a lack of the certification would have a negative impact, and 58% said on-site energy generation would have a positive impact. Another 53% deemed smart technology a positive.
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