European Property Experts Launch RenoValue - A Project to Mainstream Green Credentials
April 11, 2014 /3BL Media/ - A group of experts in green building, investment and finance and property valuation have gathered in Brussels marking the launch of a new European programme aiming to further integrate energy performance of buildings into the property valuation process.
RenoValue, an EU Intelligent Energy Europe funded project, will develop a training programme for property valuation professionals on how to factor energy efficiency and renewable energy issues into the valuation process, to better understand their impact on both the financial performance of a building and on property values, and to advise their clients accordingly.
The RenoValue consortium comprises leading specialists from: the Royal Institution of Chartered Surveyors, the Karlsruhe Institute of Technology, CBRE, the Polish National Energy Conservation Agency, Troostwijk Real Estate, Skanska and Business Solutions Europa.
Empirical studies consistently show that within several markets around the globe property pricing increasingly distinguishes between buildings that exhibit different “green features” and associated physical or operational performance.
Evidence shows that these features are translating into higher value in the form of increased rental rates, higher sale prices, increased occupancy rates, lower operating expenses, faster marketing-times, higher net operating income, lower capitalisation rates, and, in the case of commercial buildings, increased workers’ productivity.
“Property valuation is an essential aspect of the property lifecycle. With market demand for energy efficient buildings increasing, it has become vital to provide real estate valuers with detailed information on how to integrate the effects of energy performance into the valuation process” said Reno Cardiff MRICS, Partner and Head of Business Space Capital Markets of Cushman & Wakefield in Spain, member of the RICS Europe Board, chair of the RICS Europe Virtual Valuation Network and expert member of the European Valuation Steering group of the RenoValue project.
"Being able to demonstrate the business case for more efficient buildings and provide property valuers with the right information to integrate energy performance in property valuation practices is essential to accelerate the market transition towards Nearly Zero-Energy buildings in Europe.” said Vincent Berrutto, Head of the Energy Unit at the European Commission's Executive Agency for Small and Medium-sized Enterprises. “This is why we have decided to provide financial support to the project RenoValue through our Intelligent Energy Europe Programme” concluded Dr. Berrutto.
Mark Creamer, CBRE’s head of Valuation and Advisory Services for the EMEA region, added: “Sustainability features and their impact on the value of real estate have become a key issue for a range of stakeholders which operate in the sector; from developers, to investors and through to banks and other lenders. CBRE recognises the gap between what is available and what is required by valuers when assessing the potential valuation effect of a particular building feature. We are pleased to be at the forefront of this initiative to improve valuer awareness of the issues and promote best practice at a European level.”
Note to Editors
RenoValue is a 2-year project funded by the Intelligent Energy Europe Programme of the European Union.
About CBRE Group, Inc.
CBRE Group, Inc. (NYSE:CBG), a Fortune 500 and S&P 500 company headquartered in Los Angeles, is the world’s largest commercial real estate services and investment firm (in terms of 2013 revenue). The Company has approximately 44,000 employees (excluding affiliates), and serves real estate owners, investors and occupiers through approximately 350 offices (excluding affiliates) worldwide. CBRE offers strategic advice and execution for property sales and leasing; corporate services; property, facilities and project management; mortgage banking; appraisal and valuation; development services; investment management; and research and consulting. Please visit our website at www.cbre.com.
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