Appraisal Foundation's New Valuation Guidance for Green Buildings
We like to talk about how energy efficiency adds value to high-performance buildings, but how do you prove it? Better Buildings and DOE have been working with The Appraisal Foundation on resources that can help.
The Appraisal Foundation (TAF) recently released Valuation Advisory #9: Valuation of Green and High-Performance Property: Commercial, Multifamily, and Institutional Properties. This advisory reflects the increasing importance of green asset valuation to CRE leaders, and addresses specific issues related to high-performance properties. The intent is to identify the actions, skills, and knowledge necessary to help appraisers competently value buildings with green or high-performance attributes.
It’s important for appraisers to understand how to value energy-efficiency and adjacent high-performance characteristics when they do appraisals. This can help move the market towards those attributes, which in addition to being environmentally responsible have the added benefit of lowering a building’s operating costs and increasing NOI.
Valuation Advisory #9 is the third of three sustainability-related advisories developed by TAF. The other two can be found here:
- Valuation Advisory #6: Valuation of Green and High-Performance Property: Background and Core Competency
- Valuation Advisory #7: Valuation of Green and High-Performance Property: 1-4 Unit Residential
In addition, those interested in learning more about integrating green and high-performance features into asset valuation should check out the DOE Appraisal Toolkit!