Focusing on the voluntary LEED and ENERGY STAR environmental certification schemes in the United States, we investigate whether price premiums exist across all building value categories or are localized to specific value segments. We find that the largest value building segment does not demonstrate any price premiums, while the smallest value categories do. The concentrated supply of eco-labeled offices in large, high-quality buildings likely contributes to this phenomenon. Results from hedonic and quantile regressions indicate that price premiums for eco-certified real estate assets may not be uniformly distributed across value segments and that price premiums found in the literature are concentrated in smaller and mid-tier value buildings. This may be due to the comparatively lower market penetration of eco-certification schemes in these segments.
Authors: Spenser Robinson and Pat McAllister]]>
The rapid acceptance of green buildings internationally has led to awareness of green building features and initiatives (GBFIs) in the South African property industry; however, among South African valuers, it seems the awareness is still in its infancy. Semi-structured interviews were conducted with valuers of varying degrees of experience in Cape Town, online surveys were completed by a sample of South African valuers, and a valuation simulation was conducted to determine the impact of GBFIs. The findings indicate that even though South African valuers have limited knowledge of green buildings, they recognize the importance of incorporating GBFIs in the valuation process.
Authors: Saul Nurick, Karen Le Jeune, Emma Dawber, Ryan Flowers, and Jennifer Wilkinson]]>
In this study, we examine the operational challenges of existing green building related features / systems to develop hypotheses about factors that will increase the demand for green buildings. We test these hypotheses by examining the potential green building advantages that will influence users’ adoption of green practices and their willingness to pay. The sample included 75 commercial and industrial property users in Ibadan, Nigeria. The findings show that respondents face significant operational challenges with existing building features / systems, especially energy and water. Potential advantages relevant to business processes (reduced resource utilization, quality of work life, and ability to sell to pro-environmental customers) have a greater impact on green building demand relative to other advantages. Most respondents were willing to pay between a 1% and a 10% premium for upgrading to green building. Overall, public enlightenment, awareness, and better enabling green building practice can be improved in Nigeria.
Authors: A. Olaleye, T.O. Ayodele, and M.O. Komolafe]]>
While many researchers have analyzed the obstacles to the diffusion of innovation in building construction, little empirical evidence has been gathered about the factors associated with U.S. homebuilders’ adoption of innovative building products. In this paper, we develop a theory- driven diffusion of innovation conceptual model of homebuilders’ adoption of high performance building product innovations. We are among the first to operationalize a regression model to demonstrate an application of the model using a large dataset from the National Association of Homebuilders. Model results indicate that builders’ selections of high performance products are influenced by internal or firm attributes, external attributes, as well as the attributes of the high performance innovations. These results suggest that the adoption rates of future innovative building products will likely be influenced by product and climate and have the potential to be amplified by bandwagon effects.
Authors: Andrew R. Sanderford, Matthew J. Keefe, C. Theodore Koebel, and Andrew P. McCoy]]>
Generally accepted real estate valuation theory, augmented by ample empirical evidence, supports the notion of significant impacts on prices of residential properties near highways. Houses adjacent to highways are exposed to potentially increased traffic noise, although these homeowners may benefit from increased accessibility to highway systems. This study is prompted by a massive new highway construction project (25 miles at a cost of $1.5 billion over a nine-year period) that will complete a 110-mile beltway around the Orlando, Florida metropolitan area. Using observed prices of houses near existing highways, this study provides insights into the potential effects of the new highway on planned and existing houses in this market. The results indicate significant price discounts for houses adjacent to highways, houses near high-traffic highways, and houses farther from highway on- ramps, but no significant impact related to distances from houses to highways or sound barrier walls.
Authors: Marcus T. Allen, Grant W. Austin, and Mushfiq Swaleheen]]>
This is the first comprehensive cost-benefit analysis of Leadership in Energy and Environmental Design (LEED) buildings certified within the higher education sector. Sixteen institutions of higher education (IHEs) were surveyed with the findings focused on the upfront green premium and down the line energy savings. The net present value (NPV), internal rate of return (IRR), and discounted payback period were calculated to determine the financial feasibility of LEED certified buildings within the higher education sector. The findings indicate mixed results when looking at the projects from both an upfront construction cost and full lifecycle perspective.
Author: Erin A. Hopkins]]>
We investigate the current status of sustainable value integration in Colorado’s real estate markets, an area with limited current / historical value attributed to sustainability. The property appraiser has an opportunistic position to influence stakeholders and potentially increase demand for sustainable building. The appraisal process, necessary inputs, and rules and regulations were studied using an exploratory sequential mixed methods approach to conduct a cross-sectional study through archival research, survey distribution, and the collection of quantitative and qualitative data. We confirm that Colorado’s real estate appraisers are increasingly integrating sustainable building features in appraisal assignments, despite existing challenges.
Authors: Laura Bently, Scott Glick, and Kelly Strong]]>
Realtors are seen as important enablers of behavior change toward a low-carbon future through the communication of sustainability measures to home buyers and sellers. In 2012 / 2013, research was conducted to assess Californian Realtors’ knowledge of, and perceptions towards, sustainable housing using an online survey instrument. The majority of respondents consider good insulation to be the most important feature to contribute to a more sustainable home, yet the green features that buyers most commonly ask about are dual-paned windows and tankless hot water. The biggest barriers to incorporating energy-efficient features into a home continue to focus on cost and poor access to information. Realtors could play a key role to overcoming barriers by providing accurate and relevant information to consumers to improve their understanding of energy efficiency and address misconceptions.
Author: Sandy Bond]]>
Preface, acknowledgements, introduction and description of papers included in this volume of JOSRE.]]>
The Emergency Planning and Community Right-to-Know Act (EPCRA) requires reporting of potential chemical hazardous sites to the Environmental Protection Agency (EPA). The EPA discloses some sites on the Internet while others are not. I investigate whether Internet disclosure makes a difference on the impact a hazardous site has on nearby housing prices. I also investigate the relevance of EPA-hazard classifications to understand the residential market reaction to nearby chemical hazardous sites. Data from Lubbock, Texas confirm that housing values near registered chemical hazards are lower, ceteris paribus; however, Internet-listed hazardous sites do not have a bigger
impact on housing prices than do hazards not listed on the Internet. But more importantly, hazard classifications other than EPA classification better define house price behavior.
Author: Perry Wisinger]]>