For those in CRE, does sustainability play a major role in doing business today? The CPE Executive Council shares their thoughts.
Accelerating Investments
Carbon neutrality, renewable energy and climate change will continue to be a focal point for the future. Add water and food to this equation and sustainability is fundamental to our communities, cities and places. We are currently at the low point of this industry-wide cycle, but investment will accelerate as we rebound and sustainability comes back into vogue. —Mark Rose, CEO, Avison Young
Producing a Premium
Not surprisingly, I tend to view this through the lens of economics. Once upon a time, the market suggested that it was relatively unimportant. But those times have passed. In pricing and preferences, for uses of space and investors, sustainability produces a premium. That’s an important signal I would not ignore. —Ryan Severino, Chief Economist & Head of U.S. Research, BGO
Growing Importance
It’s important, and it’s only growing in importance. Right now I essentially look at sustainability features as “nice-to-haves” with CRE investments, but I’d better have a plan in place to implement measures otherwise those assets likely won’t hold up to what’s in demand from new or renewing tenants, especially in major MSAs where there’s a lot of differentiated inventory. —Jeff Hamann, Editorial Director, Janover
