Delotte and Touche provides a compelling argument that sustainability has a direct impact on real estate value and marketability in their article titled "How to Improve Real Estate Value with Sustainability". As a result of their analysis, they concluded that there is a impact on IRR ranging between 98 to 220 basis points when a building owner invests in sustainability. With that said, even more interesting is the impact to expected IRR when a building owner chooses to do nothing.
“The takeaway for CFOs is that CRE companies can derive tangible benefits by embedding sustainability in their portfolio and asset management activities,” he says. “Furthermore, a lack of sustainability investments can impact their ability to sell those facilities later, enter into new leases and drive cost savings via improved energy and water efficiency."
- Bob O’Brien, partner and global and U.S. Real Estate Services leader for Deloitte & Touche LLP