Appraisal Podcasts

Jetson Green Blog Green Appraisals + Valuation - Not Recognizing Building Values Yet

Followers of Appraisal Podcasts know that I recently posted an article about green buildings and whether they could command a rent premium. I ran across the Jetson Green blog recently and thought I would pass one of his posts along to you. Some food for thought on green buildings and the valuation issues that present themselves to appraisers. I think that current valuation techniques, properly employed by a skilled appraiser would yield reasonable and well supported valuations. If the market perceives a value difference in green buildings it should be measurable from the market.  The Jetson Green blog doesn’t quite agree:  

“This is a topic that just eats at my mind.  I’ve written about green lending before, but according to the industry, lenders don’t care if a building is sustainable.  Green features are ancillary to the job they’re doing.  And for appraisers, it’s too risky to take green features into account when appraising a building.  Appraisers keep using historical methods of valuation because the lenders will hold them accountable if a deal doesn’t go through on an appraised value.  I must admit, I don’t have much experience in the appraisals line of work, so feel free to jump in…regardless, if we can’t get this valuation thing figured out, owners won’t realize value that they legitimately have in the buildings.”   

The topic of green buildings and the proper valuation techniques will likely see more articles in the near future. There are some very good links to articles within the Jetson Green post. I encourage you to read the blog post and the accompanying articles.

This entry was posted on Thursday, February 1st, 2007 at 7:10 am and is filed under Green Buildings. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.