CPE Executive Council: How Important is Sustainability in CRE Business?

A look at how crucial going green is for investors, developers and economists.

For those in CRE, does sustainability play a major role in doing business today? The CPE Executive Council shares their thoughts.

Mark Rose
Mark Rose

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

Ryan Severino

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

Jeff Hamann

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

You May Also Like