Effects of the environment on Real Estate

2 Replies

Hello everyone,

My name is Miguel Coto, new member here on BP and new to Real Estate overall. I'm interested on getting into the sustainable Real Estate market and I'm looking for people to share some of their opinions on the industry and experience as well. I've come up with the following set of questions to facilitate the discussion:

1. What factors are relevant when looking for a good investment in sustainable RE? (i.e. pollution level, noise level,etc)

2. What are some of the current challenges the industry faces? + current solutions used?

3. Who are the main investors in the field?

Looking forward to reading your responses!

Miguel

Welcome, @Miguel Coto . I think the first question is what do you mean by "sustainable?" I would argue that by definition no development is "sustainable." Even a passive house that is net zero or even net positive has a tremendous amount of embodied energy, which will never be offset by solar-wind-whatever, and many (most) of the materials used are not renewable. 

To offer some answers to your questions:

  1. Energy usage of course. How can that be improved with existing stock as opposed to building new? "Good investment" and "sustainable" (depending on how you define that) probably don't go together.
  2. Up-front cost, value proposition, and factors that aren't under the control of the owner. Real solutions are not really there yet.
  3. Mostly only very high-end luxury builders. E.g. LEED certification can be a competitive advantage for a new development, but only in certain very expensive markets.