Sustainability and Green Building

So what is sustainability?

The United Nations defines sustainability as:

“…a development that meets the needs of the present without compromising the ability of future generations to meet their own needs.”

The term “eco-friendly” is often used to reference the indoor environment, with ecologically friendly products considered less likely to create irritations and allergens. Low VOC (Volatile Organic Compound) paints are an example of an eco-friendly improvement. Materials which are plentiful are considered a more sustainable alternative as they do not deplete resources in shorts supply. Bamboo has increased in popularity in recent years due to its plentiful supply, and quick growth.

There are certifications for green products which indicate that the process of their creation or delivery to market has been monitored by a third party. The Forest Stewardship Council (FSC) is a non-profit which monitors forestry.

Green Building is a term which may or may not consider the sustainability of materials. Energy Star homes are green in that they are energy efficient and therefore create fewer carbon emission. However, sustainable green building is development which includes consideration of resources as well as energy efficiency.

Efforts to Promote Understanding of the Value of Green

Last month I had the honor to host a Green Day for the American Society of Appraisers International Conference in Washington DC. It is such a great experience to find other like minded people in one's profession who cans share their experience. I lectured in the morning session on Green Building Fundamentals and Value Considerations with Leanne Tobias, LEED AP, of Malachite LLC, who is one of the first LEED APs in the country in the commercial investment sector.

The attendees were diverse, and my video on geothermal was a big hit with one appraiser in particular, who had just been out to an estate with a system he had not fully understood. A few slides on thermal imaging made the group think about how to look at a home. When we have information on how a home performs viewed with infrared, it gives us a chance to view it as a system, not just a static place.

The slides on value considerations presented the best studies to date, and they all point in the same direction- the economy may be in recession but the Green Building industry is booming.

In the afternoon, I hosted the afternoon session on Renewable Energy Facilities. There was such animated discussion among the 130 or so attendees, a mix of Real Property and Machinery and Equipment appraisers. We had Michael Zimmer, Esq. of the American Bar Association speak on distributed generation, Joseph Ketell of Appraisal Economics David Moody of Shaw Consulting, and Les Miles of Asset Valuation Consultants. Commentary was that it was so great to attend a conference which was not tainted by any particular opinion about Green. We were there to learn, to look at the facts from different viewpoints, and bring away from it valuation knowledge. The panelists brought a variety of viewpoints and a wealth of factual information.

The point of planning this conference was to promote understanding of Green Building and Renewable Energy Facilities among appraisers. There has been criticism that appraisers too often overlook energy efficient items, and do not understand them enough to analyze their impact on value. Global Keepers is trying to address this issue, as a broker, appraiser, and educator.