The increasing focus on Environmental, Social, and Governance (ESG) factors in commercial real estate has led investors to view sustainability as an asset risk management tool. Implementing energy efficiency measures in properties can result in significant cost savings, reducing utility expenses and increasing Net Operating Income (NOI), which positively impacts property values. For instance, investing $200,000 in energy efficiency upgrades can raise a property's value by $428,571. ESG efforts can also lead to lower vacancy rates, higher rents, risk mitigation, improved market perception, and compliance with local laws, all contributing to increased property values in measurable and intangible ways.
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