High-performance commercial buildings (often described as "green") are becoming increasingly common in the marketplace. Recognizing this market growth, this guide aims to help lenders understand the valuation of high-performance buildings. As a companion piece to the 2013 primer Green Building and Property Value, this report examines the relationship between lenders and appraisers and how green features fit into components of value to affect the premiums, collateral risks, and overall market value of high-performance buildings. It also builds upon the 2012 report "Recognition of Energy Costs and Energy Performance in Real Property Valuation," which was co-produced by IMT and the Appraisal Institute. In addition to breaking down the components of value, the new guide includes is a step-by-step guide for navigating the appraisal process and an analysis of positive considerations and downside risks in green asset valuation.
This report was producted by IMT and the Appraisal Institute and was supported by a grant made possible by the District of Columbia Department of Energy and Environment, funded by the Green Building Fund Grant Program.