Energy in Commercial Appraisals and Mortgages: Risk or Reward?
The energy performance of buildings is not fully considered during commercial real estate transactions, a process that involves high stakes and numerous stakeholders. Energy is generally not a motivating factor for lenders or considered with nuance during valuation, with current mortgage and appraisal practices not fully accounting for the risks and opportunities associated with energy use of buildings. After a scoping study and stakeholder engagements with lenders and building owners, Lawrence Berkeley National Lab and UC Berkeley Haas School of Business identified several potential inventions to properly account for energy factors in the lending process. JDM Associates shared what's new with Energy Matters!, a training course for commercial appraisers, and efforts to engage the lending community on appraisals for high-performing buildings.