Preface, acknowledgements, introduction and description of papers included in this volume of JOSRE.]]>
In this paper, we examine how energy consumption differs among different residential housing types. Most previous research suggests that apartments are less energy efficient than single-family homes, whether owner-occupied or rental. In addition, principal-agent problems in rental housing are said to lead to greater energy consumption by renters. Using microdata from the Residential Energy Consumption Survey, we examined the impact of both structure type and tenure on energy usage. Our results show that multifamily homes are more energy efficient than single-family homes, and that it is not tenure, but rather whether the resident pays for energy directly that affects energy usage.
Authors: Mark Obrinsky and Caitlin Walter]]>
In this paper, we examine energy storage, peak load minimization, and demand response and how these new technologies are allowing commercial building owners to capitalize these value streams by implementing new technologies. The use of smart grids in commercial buildings can reduce total carbon emissions, placing building owners in an advantageous position should a carbon tax ever be imposed on emissions. Owners of commercial buildings should seriously consider smart microgrids that combine energy production, storage, and the ability to isolate and insulate the building from the grid should a power disruption occur. Smart and micro grids add positive value to commercial buildings because they provide (1) peak load management (shaving costs), (2) integrate renewable energy (reducing emissions and costs), and provide (3) instant back-up power on demand giving the building added reliability, safety, and the ability to continue operating under otherwise challenging circumstances.
Authors: Stephen Sewalk, Norm G. Miller, Sunny Liston, and David Wenzhong Gao
This article is a cross-disciplinary literature review of eight environmental amenities and their marginal price effect on nearby residential property values. The purpose of the article is to present variation in price contributing effects of amenities on home values and to identify most commonly used value capturing measurement variables, proximity to and view of, amenities. Additionally, variants of these variables are identified and are presented to showcase how they are used in different situations for different amenity types. Further, this article also highlights which variant of the variable is most suited to capture the marginal price effect by the amenity types. This is the first attempt to compile a comprehensive review of the literature from five disciplines across eight amenity types and provides a useful base for scholars and practitioners interested in the topic.
Authors: Jay Mittal and Sweta Byahut]]>
As the built environment produces a third of total greenhouse gas emissions, there is potential for the sector to lead in mitigating global warming. Many terms describe sustainable buildings (e.g., green, ecological, environmentally friendly) but are they the same? Could it mean our understanding of sustainability is fragmented or confused? Moreover, what is property professionals understanding of sustainability? A gap in understanding could mean that property professionals will be unlikely to deliver ‘‘sustainability,’’ with onerous consequences. In this study, I explore how individuals understand sustainability, and how that understanding influences behavior and action.
Author: Sara Wilkinson
Rigorous consideration of green and high-performance attributes is rarely included in the residential property valuation process. Drawing upon the literature and interviews of property valuation professionals, in this I identify key barriers to scale-up of this emerging practice and opportunities for overcoming them. Key categories of opportunities include elevating the competency of appraisers, developing better information resources, improving benchmarking and rating tools, better characterizing and managing performance risk, integrating disaster resilience and sustainability considerations, mitigating the problem of additional time / cost for performing assignments, enhancing demand for improved appraisals, and engaging a greater diversity of market participants.
Author: Evan Mills]]>
In this study, I analyze longitudinal differences in single-family home prices in two new urbanist neighborhoods versus surrounding conventional neighborhoods. Using data on 78,513 single-family home sales transactions in Montgomery County, Maryland, I adopt a novel multilevel methodology to assess the effects of neighborhood demographic, economic, and locational characteristics as well as the effects of year on home prices. Results support empirical evidence on the premium that buyers willingly pay for homes in new urbanist neighborhoods. Year effects indicate that the premium withstood the Great Recession quite well.
Author: Edmund Zolnik]]>
In this study, I ask office building tenants whether a building’s environments would impact their productivity at the workplace. Multilevel logistic regression analysis is employed to identify which sustainable building attributes are significantly associated with their perceptions. The findings indicate that 58% of respondents recognize that a building’s environments influence their productivity. When it comes to individual attributes, the analysis reveals that those who are willing to pay more for better access to natural light, improved indoor air quality, individual temperature control, and green (non-toxic) cleaning are more likely to agree with the proposition that a building’s environments affects their productivity.
Author: Eunkyu Lee]]>
In this paper, we analyze the effect of socially responsible investments within a multi-asset portfolio optimization model. We also attempt to bridge the gap in the real estate literature between sustainability principles and investment analysis. To this aim, listed real estate companies with an active sustainability agenda, identified through the MSCI ESG database, represent the sustainable real estate asset class. Applying a downside risk approach by using a conditional value at risk (CVaR) optimization technique, we establish empirically whether diversification benefits can be achieved by investing in companies with a proven track record in sustainability. Our results highlight the potential contribution of listed real estate companies with high sustainability ratings to an institutional investor’s portfolio taking into account differences in investment style and risk aversion.
Authors: Peter Geiger, Marcelo Cajias, and Franz Fuerst]]>