《世邦魏理仕:2023年可持续建筑特点的价值研究报告(英文版)(25页).pdf》由会员分享,可在线阅读,更多相关《世邦魏理仕:2023年可持续建筑特点的价值研究报告(英文版)(25页).pdf(25页珍藏版)》请在三个皮匠报告上搜索。
1、REPORTThe Value of Sustainable Building FeaturesIntelligent InvestmentCONTINENTAL EUROPECBRE RESEARCHMAY 20232CBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentThe Value of Sustainable Building Features|Continental EuropeWelcome to the CBRE Continental Europe research report exploring the relationsh
2、ip between sustainable building features and value.There is an ever increasing amount of“green premium”literature which aims to demonstrate that sustainable features add financial value to buildings.Such features include those which:Tackle climate change and/or allow a building to adapt to its effec
3、tsImprove energy performanceReduce fuel consumption and carbon emissionsReduce water and waste usagePromote biodiversity and awareness of the impact of a building on its surroundingsThere is a good case that sustainable features do add value not least by protecting against the risk of future obsoles
4、cence.But there is an urgent need to improve the quality of the evidence and underlying data.We also need to acknowledge that the recent and rapid repricing in real estate markets has both accelerated and complicated valuation and decision-making challenges for our clients.This report aims to move t
5、he debate forward and exemplify CBREs active engagement in this important subject across our business.We hope you find it stimulating.Get in touch with us to discuss how we can help you further with the challenges it outlines.CBRE aims to be a market leader in understanding,pricing and reflecting th
6、e value of sustainable building features.In this report we explore the state of play on the case for investment in sustainable building features and the value this potentially creates.ForewordMark FidlerHead of Valuation Advisory,Continental EuropeDragana MarinaSustainability Research Lead,Continent
7、al EuropeLudovicChambeHead of Sustainability,Continental EuropeCBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentThe Value of Sustainable Building Features|Continental Europe3CBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentThe Value of Sustainable Building Features|Continental EuropeThere is clear
8、 evidence of a“green premium”CBREs European analysis suggests that office buildings with sustainability certifications earn a 6%rental premium over their non-certified peers.Logistics properties with BREEAM certification achieve a 25bps five-year median valuation premium compared to market Prime Net
9、 Yield.A survey of the international academic evidence indicates an average gross premium for green building certificates of 68%(rents)and 1416%(capital values).Measured premiums are likely to decline over time as the supply of green building features increases.However,further work is needed to impr
10、ove the evidence baseEvidence from the office sector predominates.In other real estate sectors such as residential,retail and logistics,the evidence base is much thinner;more data and research is needed.There is very little literature on the premium associated with a net zero building,or the costs o
11、f achieving it.The evidence is very focused on the value of green building certifications,and says much less about the value of high underlying environmental performance(such as actual energy consumption).Findings must be interpreted with caution.The heterogeneity of real estate makes general conclu
12、sions difficult to apply to individual circumstances.Focusing on discounts as a driver,and the absenceof sustainable featuresThinking about discounts for the absence of a green building feature,rather than premiums for their presence,can be helpful.But research-based quantification of discounts will
13、 be of limited use.The concepts of premiums and discounts assume that changes in attitude become embedded in market behaviour.For a brown discount to exist,sustainable features need to become a standard expectation in the market.Case-by-case modelling of discounts for the absence of sustainable feat
14、ures may be better at illustrating the costs of not taking action.Evidence suggests that investors are implementing sustainable improvements to their real estate defensively to avoid discounts and protect value,rather than aiming to achieve premiums through market-leading stock.4Executive
15、 SummaryAttitudes and Willingness to Pay015CBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentThe Value of Sustainable Building Features|Continental EuropeAttitudes and Willingness to PaySustainable demands on real estate seem likely to grow,but they may not always be expressed in price.Rising living
16、 costs combined with an increasing awareness of environmental and social issues,suggest that pressures upon real estate decision makers to reflect ethical preferences will continue to grow and become more complex.As we show in this report,these pressures may likely result in a modest uplift in finan
17、cial value for real estate,which reflects societys preferences.Conversely,a failure to take action to respond to consumer,occupier and financier pressure could see the financial value of obsolete real estate fall.But,even if real estate financial value does not increase by responding to societal pre
18、ssures,this does not mean that such buildings deliver no additional value at all.While this research report aims to contribute to the debate surrounding the financial value of sustainable building features,there is also a growing debate about whether value should always be measured in financial term
19、s.So,when considering motivations and rewards for investing in sustainable building features,we should take account of the possibility that real estate decision makers might simply be advancing human values in a desire to do the right thing,rather than advancing financial value.Occupier and investor
20、 attitude can help quantify the demand for sustainable building features.It is beyond CBREs remit to investigate how end-users choose to transact(or not)with brands and firms with a proven track record of ethical decision making and a strong sustainability profile.However,we can look at whether occu
21、piers and investors say they will pay more for real estate which is consistent with those sustainable credentials.32%of European investors are willing to pay premiums for“ESG-friendly”assets.More than half of them are willing to pay in excess of 20%.Source:European Investor Intentions Survey(CBRE,20
22、23d)63%of European logistics occupiers say they would be willing to pay a rental premium for sustainable building certification.Source:CBRE and AnalytiqaEuropean Logistics Occupier Survey(CBRE,2022a)67%of Continental European investors and occupiers are willing to pay a premium for building features
23、 that improve the physical and mental health of employees and for buildings that have health and well-being certifications.Source:Strengthening Value Through ESG,Continental Europe Executive Summary(CBRE,2023e)6CBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentThe Value of Sustainable Building Featu
24、res|Continental EuropeAttitudes andWillingness to PayFocus Valuation AdvisoryThe challenge now for Continental Europes valuation industry is interpreting the increasing ESG evidence and reflecting it in Market Value.A green premium or a brown discount,depending on a buildings sustainable features,sh
25、ould be based on actual transactional evidence;and a concrete analysis of market sentiment.For valuer and client this brings a range of practical issues to resolve.Mark FidlerHead of Valuation Advisory,Continental Europe03Across the many markets of Continental Europe there is a growing need for a co
26、nsistent(reporting)approach on sustainability in valuations,most especially for the larger institutions holding portfolios over multiple countries.In Europe this is made more complex by differing Government legislation across the countries.04And of course there is a technical valuation discussion an
27、d the need for consensus agreement on how sustainability factors should be reflected within cashflows and models.Global valuation standards do require valuers to identify clearly how valuations are arrived at.Findings must be logically explained.01It requires the valuer to identify the sustainabilit
28、y profile of each property.Data here is key.Some of the data needed to do this will be in the public domain,but much will be available only from the owner.What information is genuinely required by valuers;and how far does the valuer go in validating and adopting the information?02Obviously,the susta
29、inability profile of each building used as evidence must also be identified.In some cases the profile will be known or obvious,but not always.How can transparency be increased?The positive news is that many valuation industry bodies across Continental Europe are heavily engaged in finding solutions
30、to these questions.The pace of change is accelerating,with many investors,financiers and other market players now actively working together across all aspects of real estate,not just valuations,to handle the fundamental challenge of ESG.7CBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentThe Value of
31、 Sustainable Building Features|Continental EuropeMeasuring and certifyingMany hotel operators focus on sustainability and have been certified according to various schemes,such as Green Key,Ecolabel or Nordic Swan.One of the most important parts of the sustainability process is to start measuring out
32、puts and inputs and pursuing a course of improvements.The various ecolabels provide a framework for such endeavours.However,there are huge discrepancies between the various certification schemes,and few of them focus on the physical infrastructure of buildings,circularity etc.It may be necessary for
33、 building owners to certify their hotels according to BREEAM or LEED or DGNB,in addition to the efforts of the operator.Attitudes andWillingness to PaySector Focus HotelsThe value of a hotel property is directly linked to its operating cash flows.Hotels which are perceived as“sustainable”will be abl
34、e to command premium rates compared to competitors without the same features.Additionally,there is the potential to decrease operating costs during the ownership period.However,with hotels,there are features that need deeper consideration and understanding.Who pays for investments in sustainability?
35、In many European markets,hotel leases are prevalent.Rents tend to comprise a fixed element to which turnover-based,variable rent may be added.For the property owner,there is no direct incentive to invest in sustainable features that do not affect turnover but may increase the operators profitability
36、For the hotel operator,the payback for investing in sustainable features may take too long and the ultimate benefit in building value may not accrue to themTherefore,sustainability initiatives may suffer unless the parties find new and better ways to work together.For other operating models,such as
37、Hotel Management Agreements,the owners responsibility for bearing the cost may be clearer,but simply following the management companys strategy may not be right in all markets.Guest behaviourTechnology has made it possible to reduce energy consumption in hotels with measures such as heating rooms on
38、 demand and key card operated lights.Guests have been asked to contribute by reusing towels and switching off air-conditioning when they leave the room.However,for many guests,staying in a hotel is synonymous with a higher level of creature comforts,and they take longer showers or deeper baths than
39、they would at home.Guests at spa hotels and resorts do not want to compromise too much and expect a certain quality of service.Hotels can work to change guest behaviour as well as invest in technology and clean energy sources that mitigate the effect of the behaviour that cannot be changed.So far,th
40、ere is little evidence of a link between higher levels of sustainability certification and increased hotel values.There is also little evidence of a brown discount for buildings that are not presented as“green”.Encouragingly,though,research by B,Expedia and Skift has found that travellers increasing
41、ly seek out sustainable options when planning their travel(78-90%)and that about half of travellers would be willing to pay more for sustainable options.Expedia found that consumers are willing,on average,to pay 38%more to make their travel more sustainable.We know investors are focusing their effor
42、ts on buildings that meet sustainability requirements and find it difficult navigating the jungle of different certification schemes.For hotels,where there may be separate certificates for the operation and the buildings,the issue is even more muddled.Erik MyklebustHead of Hotels,NordicsThe Quantifi
43、ed Evidence on Premiums039CBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentThe Value of Sustainable Building Features|Continental EuropeCBREs 2022 European analysis suggests that office buildings with sustainability certification earn a 6%rental premium over their non-certified peers.The sample inc
44、luded 7,500 leases in office buildings with sustainability certification,and 37,000 leases in non-certified stock,creating one of the largest and most robust European studies of this data.A comparison analysis found that the average rent for office buildings with sustainability certification,which d
45、enotes a high degree of energy efficiency and environmental responsiveness,is 13.3%higher than that of non-certified buildings.When the effects of building location,size,age and renovation history are accounted for,our model suggests that office buildings with sustainability certification earn a 6%r
46、ental premium over their non-certified peers(Figure 1).The premium we found is consistent with other CBRE studies over a long period of time,which suggests an enduring benefit to office rents from verifiable measures to reduce carbon emissions.Figure 1:Sustainability certified rent(premium)compared
47、to uncertified rent0%5%10%15%20%City result is statistically significantSource:Is Sustainability Certification in Real Estate Worth it?,CBRE Research(CBRE,2022f);*City result is not statisticallysignificant Rental premium for the European sample as a wholeThe Quantified Evidence on Premiums-Offices1
48、0CBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentThe Value of Sustainable Building Features|Continental EuropeCBREs 2022 European analysis suggests that logistics buildings with sustainability certification command a 25bps five-year median valuation premium compared to market Prime Net Yield for E
49、uropean Logistics(including the UK).The Quantified Evidence on Premiums-LogisticsSince 2018,the analysis showed a visible trend in market reported yields for BREEAM certified properties being lower than the market Prime Net Yield at the time of transaction.This is a very significant observation,sinc
50、e market reported yield reflects lower perceived risk,and positive investor expectations about market movements and future market position within the local context.This is also being reflected in the lower risk of asset value depreciation and relatively higher rental growth potential compared to mar
51、ket average.The analysis further implied that there are two elements that are important:certified stock and liquidity.Investors are increasingly targeting properties with strong sustainability credentials.As this stock is still limited in several markets,we can expect pricing to become stronger.Figu
52、re 2:Key highlights from the report8.1%Five-year average share of BREEAM certified stock in the total I&L investment volume25bpsFive-year median valuation premium compared to market Prime Net Yield for European Logistics(incl.UK)30bpsFive-year median valuation premium compared to market Prime Net Yi
53、eld for UK logistics with BREEAM Excellent ratingRentalPremium not necessarily visible but applicable through lower void periods,higher liquidity and easier(re)lettingSource:Capturing the Value of Sustainability in European Logistics,CBRE Research(CBRE,2022g)11CBRE RESEARCH 2023 CBRE,INC.Intelligent
54、 InvestmentThe Value of Sustainable Building Features|Continental EuropeAcademic research typically looks at premiums for“green”certified buildings compared with the rest of the market.The Quantified Evidence on PremiumsCBRE has examined five recent major international literature reviews:Typically t
55、hese studies look at the difference in prices or rents between buildings in a market with an environmental certification(such as BREEAM or LEED)and those without(or the market average).Most studies also control for the possibility that other factors than the certificate might be driving the value,bu
56、t they also focus predominantly on the US and UK housing markets with a limited evidence base for other asset classes or countries.A common theme is that the increasing supply of buildings with sustainability certifications is believed to be reducing the green premium(due to market competition).We h
57、ypothesise that in the long-term,premiums will tend to fall.As certification becomes an average characteristic,rents should also tend to the average.However,more detailed certification frameworks may result in“green”pricing.Going forward,certification standards are likely to evolve further,which can
58、 potentially result in the development of differential green pricing.Dalton&Fuerst(2018)Zhang et al(2017)Mangialardo et al(2018)Leskinen et al(2020)Monnier(2021)12CBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentThe Value of Sustainable Building Features|Continental EuropeValue may also show up in
59、faster leasing,or lower vacancy not just in rents.The Quantified Evidence on PremiumsA number of studies also examine the potential for value to show upin metrics other than rent or capital value.International evidence suggests that office buildings with green features lease faster than the rest of
60、the market,and enjoy lower medium-term vacancy rates.Figure 3 provides some sample findings.Other value-related benefits anecdotally reported to CBRE researchers include:Lower lending costs for development or refurbishment of“green”buildingsLess need to offer tenant incentivesTenant agreement to co-
61、invest in green features with landlord Lower operating costsHowever these benefits should not simply be assumed.For example,Newsham(2009)found that around a third of LEED buildings used more energy than their conventional counterparts;while BSRIA(2012)found that only 44%of BREEAM clients felt BREEAM
62、 delivered operational cost savings.AuthorMarket(s)studiedNon-rent factor studiedFindingCBRE(2021f)11 European city office marketsVacancy rateVacancy rates in offices with sustainability certifications were universally lower than in non-certified buildings(as at H1 2021).CBRE(2022h)38 European city
63、office marketsVacancy rateCertification can be a significant factor in lowering vacancy risk.In the majority of cities analysed,certified buildings command lower vacancy rates compared to non-certified stock.CBRE(2022c)3 Australian city office marketsVacancy rateNABERS 5.5 and 6 Star offices have a
64、4%higher occupancy rate compared to NABERS 4.5 Star peers,and 11%compared to offices with 4 Star or lower ratings.Mangialardo et al(2018)Milan officesLeasing velocity,vacancy rateGreen certified buildings leased up four times as fast as the non-certified equivalents after six months,and had half the
65、 vacancy rate after 30 months.Devine and Kok(2015)Canada officesVacancy rate,likelihood of lease renewalOffices with LEED certification had an 8.5%higher occupancy than comparable buildings.Offices with BOMA BEST certification were 3.4%more likely to experience lease renewal than a comparable uncert
66、ified building.Figure 3:Sample findings relating to non-rent“green”value13CBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentThe Value of Sustainable Building Features|Continental EuropeSpecifically identifying the value of sustainable building features is difficult,so findings in this field should b
67、e interpreted with some caution.Four main caveats to the“green premium”literature need to be considered.Four Important Caveats to the“GreenPremium”Literature1TimingMost studies are snapshots of the market under study at a point in time,but premiums are likely to erode over time as sustainable buildi
68、ng features become more common.It is therefore important to identify the supply of a given sustainable building feature at the time the study was conducted,making it possible to establish how mature the market was for that sustainable feature(as per CBREs own research).2Quality of evidenceMany studi
69、es recognise that sustainable building features may be present alongside other features which also add value to a building,and that it is difficult to attribute value specifically to the sustainability elements.Statistical techniques are available to remove the influence of these other factors,but n
70、ot all studies use them.This may be as a result of a lack of appropriate data.The evidence is also limited outside the office and residential sectors,and in some markets there is not an adequate body of research to draw meaningful conclusions.3Certification as a proxyThe widespread availability of g
71、reen building certification schemes in some markets,and the lack of any other comparable data,explains why certifications are heavily used as an indicator of a sustainable building.However,there are risks with this approach.Certifications are typically weighted scores combining a wide range of envir
72、onmental performance metrics,but end users may only want to pay a premium for a subset of these features.Studies looking at specific metrics such as actual energy consumption seem increasingly likely to be needed.4Every building is differentThe heterogeneous nature of property,especially commercial
73、property,means that the outcomes for individual buildings could vary wildly from researched averages.The Quantified Evidence on Discounts and Costs0415CBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentThe Value of Sustainable Building Features|Continental EuropeIs it easier to identify the discount
74、for the absence of a green feature than it is to identify the premium for its presence?The difficulties in establishing the value of a net green premium have in recent years led some commentators to prefer instead the related concept of the brown discount.This concept may be defined as the discount
75、in price sought when a building lacks green features which have come to be expected in the market.These could include:Physical risks of climate change such as wildfires,flooding or water scarcityTransition risks of climate change such as inefficient building design leading to unmanageable energy cos
76、tsLegal risk of failure to comply with existing or forthcoming regulationsOther environmental or social risks such as poor support for biodiversity,or the presence of controversial tenantsDiscounts for the absence of a green feature ought,in due course,to be observable in the market through research
77、.However,there are in practice very few studies which attempt discount-based analysis.Even attempting to quantify general real estate depreciation has proved difficult,with widely varying estimates.The Quantified Evidence on Discounts and Costs16CBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentThe
78、Value of Sustainable Building Features|Continental EuropeRegulation in the UK and the Netherlands has led to observed discounts for lower EPC ratings.An example of research on discounts for obsolete property is CBRE IMs(2022)work on Energy Performance Certificate(EPC)ratings.Legislation imposing min
79、imum energy performance ratings based on EPCs was implemented in the UK in 2015 and the Netherlands in 2016.CBRE IM found discounted investment returns for assets with lower EPC ratings.This effect was most notable for F/G rated UK buildings from 2019,when it had become illegal to re-let such buildi
80、ngs.Figure 4 shows that the discount on total return for assets with an EPC of F/G was-18%(UK)and-14%(Netherlands)compared to A/A+rated assets in 2020.The lower total return for poorly performing assets was driven primarily by capital growth,not by income return.The discount was not observed elsewhe
81、re in Europe,where legal minimum EPC requirements have not yet been introduced.This suggests that it is the presence of regulation,rather than customer demand(or other recent Europe-wide influences,such as the COVID-19 pandemic)that has created the discount.Figure 4:Difference in total return of EPC
82、 B/C and EPC D/E compared to EPC A/A+rated properties(percentage points)Source:CBRE Investment Management,2022.To ease comparisons,findings shown here are simple averages;however,they are highly similar to regression analyses undertaken by the same authors,which controlled for location and construct
83、ion date.Covers industrial,office,retail and residential assets.-20-10010United Kingdom-20-10010Netherlands-20-01820192020Rest of EuropeEPC B and CEPC D and EEPC F and GThe Quantified Evidence on Discounts and Costs17CBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentThe Value o
84、f Sustainable Building Features|Continental EuropeFigure 5:Reflecting green feature choices in cashflow analysisCashflow itemDo nothing:Do not implement sustainable building featuresTake action:Implement sustainablefeaturesCapital expenditureCosts of managing risks arising from absence of the featur
85、e(e.g.flood defences)Construction costs needed to create the featureOperating expenditureHigher running costs(e.g.gas prices,carbon pricing or offsetting)Higher lending costsLower running costsLower borrowing costsRevenueRental depreciation or actual rental discount due to loss of tenant demand beca
86、use the feature is not present(severe loss if demand is regulated away)Protection of existing rental stream;potential for premiumfor scarce best-in-class featuresDiscount rateHigher rate reflecting risks remainingLower rate reflecting risks now managedRather than seeking a premium,modelling when and
87、 how to avoid a future discount might provide the best assistance to decision-making.In the absence of timely research about the scale of discounts,investment choices can be assisted by constructing and comparing scenarios in which a sustainable building feature is present,or not.Figure5 illustrates
88、 the factors which a typical cash flow analysis could consider.This approach does require the analyst to make a range of assumptions,but those assumptions are at least transparent and informed by research.Such analysis might include estimates of the additional rental premium that occupiers might pay
89、 for sustainable building features.But it does not have to do so:instead,modelling can make a judgment about whether demand for the green feature will be so sustained that not having that feature is likely to be discounted in future.If it will,then preserving value and preventing depreciation throug
90、h defensive investment becomes essential.The Quantified Evidence on Discounts and Costs18CBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentThe Value of Sustainable Building Features|Continental EuropeFigure 6:Main sustainability priorities among European real estate investorsEuropean real estate inv
91、estors are indeed most driven by protecting value in their sustainability strategies.This defensive approach to protecting the value of real estate does indeed seem to be a significant driver of decision-making among European real estate investors.Figure 6 suggests that protecting value is investors
92、 biggest single sustainability priority.Enhancing brand image and adhering to relevant regulations were significantly less important as drivers of strategy.Ultimately,therefore,the understanding that obsolete real estate suffers a value discount may be a bigger driver of action than the potential fo
93、r modest value premiums.This doesnt mean that protecting value is the only aim.For example,some real estate capital is being actively allocated purely to environmentally-friendly assets,whether there is a higher return from those assets or not.Source:EMEA Investor Intentions Survey,CBRE Research,202
94、2b(n=81)(Select top three priorities question)0%10%20%30%40%50%60%70%80%90%100%Protect the future value of realestate assetsProtect the environmentMeet stakeholder targetsAdhere with relevantregulationsEnhance brand image or gaincertificationsGermanyUKFranceNetherlandsNordicsAll Respondents 2022The
95、Quantified Evidence on Discounts and Costs19CBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentThe Value of Sustainable Building Features|Continental EuropeCosts estimates also vary significantly,with a net zero standard costing noticeably more.The Quantified Evidence on Discounts and CostsEvidence o
96、n the cost of implementing sustainable building features is surprisingly scarce.Arguably,this reflects the fact that every building is different and costs to bring a building up to leading(or even average)environmental standards can vary significantly.Figure 7 provides a range of costings studies pu
97、blished in the last decade.As with premiums,cost figures vary substantially depending on the precise environmental standard being sought.Certification schemes which offer a scale of performance rankings not surprisingly tend to exhibit higher costs for the more demanding end of that scale.However,it
98、 is often not clear whether the costing refers to new build or refurbishment costs.Furthermore,costings are variously expressed as a percentage of construction costs or capital value.Two recent analyses of the theoretical cost of achieving net zero unsurprisingly show a higher cost.Figure 7:Costs of
99、 achieving green certifications or targetsAuthorBasis of costCost as%of capital valueChegut et al(2019)BREEAM Very Good4.9%Mangialardo et al(2018)LEED GoldLEED Platinum5%7%Abdul&Quartermaine(2014)BREEAM2%*WGBC(2013)BREEAM,LEED,Energy Star,etc012.5%*BRE(2016,citing Target Zero 2012)BREEAM Very Good/E
100、xcellent(office)BREEAM Outstanding(office)0.20.8%9.8%BSRIA(2012)BREEAM Very GoodBREEAM Excellent/Outstanding 1-4%*5%*AEW(2021)Net zero:retrofit cost estimate to avoid stranding to 20300.250.65%per year to 2030UKGBC(2020)Net zero:by 2030817%Source:CBRE Research and studies cited(see Bibliography).See
101、 Zhang et al(2017)for a list of earlier costing studies published prior to 2012.*Based on 3 case study buildings.*Costs stated as%of construction costs rather than capital value.*Modal response from a survey of 17 clients using BREEAMConclusions0521CBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentT
102、he Value of Sustainable Building Features|Continental EuropeThere is clear evidence of a“green premium”Overall,we conclude that there is reasonably clear evidence that a premium will be paid for sustainable building features.CBREs European research suggests that office buildings with sustainability
103、certifications earn a 6%rental premium over their non-certified peers.The best available international evidence suggests that there is likely to be a gross green premium of around 68%of rents and around 1416%of capital values.After accounting for costs,a net capital value premium of around 6%for gre
104、en certificationsis a reasonable global guideline.However,the margin of error is larger than this potential gain,suggesting that case-by-case analysis is needed.In any case,measured premiums are likely to decline over time as the supply of green features increases.Indeed,continuous investment is nec
105、essary simply to avoid depreciation.Conclusions1However,further work is neededEven if it is a reasonable assumption that sustainable building features will add financial value,care should be taken not to overinterpret this finding.A range of caveats should be borne in mind.Evidence from the US and U
106、K predominates.In many European countries,and in some real estate sectors such as retail and logistics,the evidence base is much thinner;more data and research is needed.The evidence is very focused on the value of sustainable building certifications,and says muchless about the value of high underly
107、ing environmental performance(such as actual energyconsumption).There is also,to date,very little literature on the premium associated with a net zero building,or the costs of achieving it.We also find that data is often out of date,and evidence quality is variable.The use of certificates as proxies
108、 for environmental performance can mislead.But there are fewpractical alternatives until data availability improves.The heterogeneity of real estate also makes general conclusions difficult to apply to individual circumstances.2It may be helpful to view avoiding a discountas a stronger driverIt can
109、be difficult in practice to establish the value uplift for sustainable building features.So,thinking about discounts for the absence of sustainable building features,rather than premiums for their presence,may be a helpful alternative.Research-based quantification of discounts will be of limited use
110、 to decision makers because it will lag the market.However,such research may help indicate which of the drivers is actually bringing the discount into being.Case-by-case modelling of discounts for theabsence of sustainable features may be better at illustrating the costs of not taking action,for exa
111、mple using cashflow analysis of alternative scenarios.When doing such modelling,care needs to be taken to make realistic assumptions about timing and the likely magnitude of the premium(or discount)likely to be experienced for the presence or absence of green features.There is evidence that investor
112、s are implementing environmental improvements to their real estate defensively,to avoid discountsand protect value,rather than aiming to achieve premiums through market-leading stock.3Bibliography and Further Reading0623CBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentThe Value of Sustainable Build
113、ing Features|Continental EuropeBibliographyCBRE(2021f)Is Sustainability Certification In Real Estate Worth It?CBRE(2022g)Capturing the Value of Sustainability in European LogisticsCBRE(2022h)Is Sustainability Certification In Real Estate Worth It?CBRE Investment Management(2022)Do sustainable assets
114、 generate sustainable outperformance?Chegut,A.,Eichholtz,P.and Kok,N.,(2014)Supply,demand and the value of green buildings.Urban Studies,51(1)Chegut,A.,Eichholtz,P.and Kok,N.,(2019)The price of innovation:An analysis of the marginal cost of green buildings.Journal of Environmental Economics and Mana
115、gement,98Dalton,B.and Fuerst,F.,(2018)The green value proposition in real estate:A meta-analysis.Routledge:Handbook of Sustainable Real EstateAbdul,Y and Quartermaine,R(2014)Delivering sustainable buildings:Savings and payback IHS for BREAEW(2021)Climate-Informed Real Estate Returns in EuropeBRE Gro
116、up(2016)The value of BREEAM:A review of latest thinking in the commercial building sectorBSRIA(2012)The Value of BREEAM CBRE and Analytiqa(2022a)European Logistics Occupier Survey 2022CBRE(2022b)EMEA Investor Intentions Survey 2022CBRE(2022c)NABERhood WatchCBRE(2023d)EMEA Investor Intentions Survey
117、2023CBRE(2023e)Strengthening Value Through ESG,Continental Europe Executive Summary Devine,A.and Kok,N.,(2015)Green certification and building performance:Implications for tangibles and intangibles.Journal of Portfolio Management,41(6)HFW/Panattoni(2022)European Logistics&Supply Chain Sustainability
118、 Report 2022Leskinen,N.,Vimpari,J.and Junnila,S.,(2020)A review of the impact of green building certification on the cash flows and values of commercial properties.Sustainability,12(7)Mangialardo,A.,Micelli,E.and Saccani,F.,(2018)Does sustainability affect real estate market values?Empirical evidenc
119、e from the office buildings market in Milan(Italy).Sustainability,11(1)Monnier,L(2021)Measuring the mythical:quantifying the green premium in real estate.AvivaNewsham,G.,Mancini,S.and Birt,B.(2009)Do LEED-certified buildings save energy?Yes,but Energy and Buildings 41(8)UK Green Building Council(UKG
120、BC)(2020)Building the Case for Net Zero:A feasibility study into the design,delivery and cost of new net zero carbon buildingsWorld Green Building Council(WGBC)(2013)The Business Case for Green Building:A Review of the Costs and Benefits for Developers,Investors and OccupantsZhang,L.,Wu,J.and Liu,H.
121、,(2017)Turning green into gold:A review on the economics of green buildings.Journal of Cleaner Production(172)24CBRE RESEARCH 2023 CBRE,INC.Intelligent InvestmentThe Value of Sustainable Building Features|Continental EuropeExplore CBREs recent research on sustainability issuesIs Sustainability Certi
122、fication in Real Estate Worth it?2022CBRE European Sustainability Legislation Mapping ToolCapturing the value of Sustainability in European LogisticsESG and Real Estate:The Top 10 Things Investors Need to KnowReal Estates Role in the Environmental,Social and Governance(ESG)AgendaView our sustainabil
123、ity research at cbre.ie/esgNeed valuation advice?Mark FidlerHead of Valuation Advisory,Continental EChristopher BaileyHead of Valuation Advisory,Denmark and NDevin UmmelsDirector,Valuation Advisory,NEuropean ResearchDragana MarinaSustainability Research Lead,Continental EJos TrompGlobal Head of Data
124、 Intelligence&Head of Continental Europe RTasosVezyridisExecutive DirectorHead of Thought Leadership for EAdvice on tackling your sustainability challengesLudovicChambeHead of Sustainability,Continental EGet in touch with our research,valuation and sustainability experts in Continental EuropeContact
125、s C opyright2023.A llrightsreserved.Thisreporthasbeenpreparedingoodfaith,basedonC B R E scurrentanecdotalandevidencebasedviewsofthecommercialrealestatemarket.A lthoughC B R Ebelievesitsviewsreflect marketconditionsonthedateofthispresentation,theyaresubjecttosignificantuncertaintiesandcontingencies,m
126、anyofwhicharebeyondC B R E scontrol.Inaddition,manyofC B R E sviewsareopinionand/orprojectionsbasedonC B R E ssubjectiveanalysesofcurrent marketcircumstances.O therfirmsmayhavedifferent opinions,projectionsandanalyses,andactualmarketconditionsinthefuturemaycauseC B R E scurrentviewstolaterbeincorrec
127、t.C B R Ehasnoobligationtoupdateitsviewshereinifitsopinions,projections,analysesormarketcircumstanceslaterchange.N othinginthisreportshouldbeconstruedasanindicatorofthefutureperformanceofC B R E ssecuritiesoroftheperformanceofanyothercompany ssecurities.Y oushouldnotpurchaseorsellsecurities ofC B R
128、Eoranyothercompany basedontheviewsherein.C B R Edisclaimsallliabilityforsecuritiespurchasedorsoldbasedoninformationherein,andbyviewingthisreport,youwaiveallclaimsagainstC B R EaswellasagainstC B R E saffiliates,officers,directors,employees,agents,advisersandrepresentatives arisingout oftheaccuracy,completeness,adequacyoryouruseoftheinformationherein.