The relationship between sustainability and the value of office buildings

There is an increasing body of evidence to suggest that the development of sustainability in office buildings and the acceptance of these buildings in the broader property market is increasing. However a gap still remains between the value of sustainability and the value of the building from an International Valuation Standards Committee (IVSC) definition of market value. Current literature is limited in the investigation of the impact of sustainable criteria on value component when undertaking a valuation of a commercial office building. Whilst substantial advances have been made in sustainable design and construction aspects, as well as reducing implementation costs and enhancing benefits associated with sustainability, there appears to be inherent barriers in adopting sustainability in the valuation process for the property industry.

This paper examines the limited previous research into the elements of sustainable criteria that impact upon property value, and in turn should be reflected in traditional valuation methods. The immaturity of the property market for sustainable building is such that current valuation methods do not appear to have significant evidential proof of increased property value through sales or lease evidence for sustainable buildings. Furthermore, this lack of market evidence makes it inherently difficult for valuers to assess the real market value of sustainable buildings through current valuation methodology. In other words, the level of risk associated with incorporating different levels of sustainability into office buildings appears difficult to measure using a market value perspective in today’s property market. Accordingly this paper examines current research that has been undertaken to identify particular sustainable criteria that potentially affects the value of a sustainable building. For example, previous research suggests that sustainable criteria impact upon the valuation equation through rental growth, depreciation, risk premium and cash flow. This paper also examines how other studies have viewed the impact of sustainable criteria and how they are weighted within the valuation equation. The discussion provides an insight into the rapidly evolving area of sustainability and office buildings with emphasis placed on the valuation process that seeks to assess a hypothetical purchaser’s perspective of this relationship.

Crossing boundaries: An examination of sustainability department and athletics department collaboration regarding environmental issues.

Across the world, organizational personnel in various industries are integrating natural environment issues into existing organizational practices. In the intercollegiate sports world, environmental efforts are undertaken as part of a strategic effort involving collaborative processes across university units. The purpose of this study is to develop a more comprehensive and detailed understanding of collaborative processes and practices between personnel in athletics departments and sustainability offices at universities and colleges in the United States. In-depth interviews were conducted with athletics and sustainability department personnel at colleges and universities in the United States. A total of 13 schools were included in the study with 17 participants agreeing to be interviewed. All interviewees were from the middle management level and higher in their respective organizations. Five central themes related to these relationships were found: relationship development, relationship communication, relationship decision-making development, collaborative efforts, and relationship challenges. The themes raise important issues about the diversity of relationships, the communicative and decision-making processes, and the involvement of stakeholders in environmental efforts as well as future research in this area.

Local perceptions of sustainability indicators: issues of scale and implications for management

A key factor impacting upon sustainable development are the perceptions people hold of their local social, economic and ecological environment. These perceptions influence how communities fashion the local landscape and in turn help to condition the ways people adapt themselves to their local spatial realities. Implicit in these perceptions are indicators of sustainability that may or may not be integrated across the social, economic and ecological realms. Further, these local indicators may not accord with those adopted at the national or global scale. Accordingly, spatial scale presents a particular set of challenges in identifying appropriate indicators of sustainability. In the same way that aggregated changes at a local scale influence sustainability on a broad scale, national and global externalities profoundly affect perceptions relating to sustainable development at the finest of spatial scales.

This paper focuses on one aspect of the issue of scale in sustainable indicator selection: local perceptions of sustainability. In this paper we report on a survey of perceptions of sustainability conducted across thirty-two sub-catchments in three major catchments in south west Victoria. We sought to uncover what people within each sub-catchment perceived as socially, economically and ecologically sustainable. Responses were compared across sub-catchments to determine whether perceptions at the sub-catchment scale were shared across the region. The results indicate that perceptions of sustainability varied between sub-catchments, which means that perceptions relating to sustainability at the regional scale may mask local trends.

Public land use planning using bioregions and other attributes : determining the study area of the VEAC river red gum forests investigation

In order to plan for the best use of public land at a regional scale the determination of an appropriate regional boundary is important for ecological, resource use and recreational reasons. The study area for the Victorian Environmental Assessment Council's (VEAC) River Red Gum Forests Investigation incorporated bioregional boundaries, modelled pre- I750 vegetation distribution, recent public land use investigations, and the distribution of public land. This paper outlines how ecological attributes and past land use studies were used to inform the boundary for this major study of public land along the Murray River in northern Victoria.

Catchment to regional scale indicators of sustainability

Ecologically sustainable development requires an integrated approach to environmental integrity, social equity and economic performance. Development of sustainability strategies and empowerment of communities to achieve sustainability will only be effective if progress is monitored. This project provides an opportunity to work within a regional partnership to develop indicators for measuring progress toward sustainability in the south west region of Victoria, Australia. As sustainability is contextual, local organizations have been involved in the identification of key regional values (social, environmental, economic and institutional) and in selecting indicators that can be used to assess to what extent these values are being protected, depleted or enhanced. These indicators are to be used as the basis for exploring relationships between biophysical and socio-economic indicators, to determine what can be deduced from these relationships about sustainability and whether these relationships hold at different spatial scales (catchment, regional and sub-catchment). A rigorous and systematic analysis of indicators and the relationships between them will assist in developing a tool to facilitate decision making for regional sustainability.

An assessment tool for sub-catchment to catchment scale indicators of sustainability - a case study in south west Victoria, Australia

The research reported in this paper represents an attempt to produce a practical, indicator-based sustainability assessment tool incorporating all these elements is based on relationships between indicators determined considering spatial influences. Through the use of an existing sustainability indicator set and data currently available, relationships will be determined using Arcview Geographic Information Systems (GIS), correlation analysis and Principal Component Analysis (PCA). Indicator interactions will be identified at two spatial scales and compared to determine impacts of changing spatial scale. Further PCA and multiple regression analyses will then be used to reduce the complexity of the indicator set. These findings will be incorporated into a practical indicator-based assessment tool through the adoption of the Analytic Hierarchy Process (AHP) combined with GIS techniques that will then be validated. Once validated the tool can be used to aid in guiding planning and decision-making regarding sustainable development in the Glenelg Hopkins catchment, Victoria; while also moving towards producing a standard set of procedures for assessing sustainability.

Regional sustainability : how useful are current tools of sustainability assessment at the regional scale?

Sustainability assessment methods are primarily aimed at global, national or state scales. However, modelling sustainability at finer spatial scales, such as the region, is essential for understanding and achieving sustainability. Regions are emerging as an essential focus for sustainability researchers, natural resource managers and strategic planners working to develop and implement sustainability goals. This paper evaluates the effectiveness of current sustainability assessment methods – ecological footprint, wellbeing assessment, ecosystem health assessment, quality of life and natural resource availability – at the regional scale. Each of these assessment methods are tested using South East Queensland (SEQ) as a case study. It was selected because of its ecological and demographic diversity, its combination of coastal and land management issues, and its urban metropolitan and rural farm and non-farm communities. The applicability of each of these methods to regional assessment was examined using an evaluation criteria matrix, which describes the attributes of an effective method and the characteristics that make these methods useful for regional management and building community capacity to progress sustainability. We found that the methods tested failed to effectively measure progress toward sustainability at the regional scale, demonstrating the need for a new method for assessing regional sustainability.

Assurance of sustainability reports : impact on report users' perceptions of reliability

This study examined whether (1) assurance, (2) the level of assurance (reasonable vs. limited), and (3) the type of assurance provider (accountant vs. specialist consultant) affect users’ perceptions of reliability of sustainability reports. Based on an experimental questionnaire, we find that the provision of assurance improves report users’ perceived reliability of the environmental and social information. There were no significant main effects between the two experimental factors; level of assurance and type of assurance provider, and report users’ perceptions of the reliability of sustainability reports. However, a significant interaction was found between the two experimental factors and report users’ perceptions of reliability of such reports. More specifically, report users placed more confidence in the sustainability reports where the level of assurance provided is reasonable (high), and when such assurance is provided by a top tier accountancy firm, rather than when the assurance is provided by a specialist consultant. No such difference was found when the level of assurance provided was limited (low) for either type of assurance provider group. The results of this study thus highlight the relevance of assurance for sustainability reporting.

Investor perception of the business case for sustainable office buildings : evidence from New Zealand

Over recent years the global market for sustainable commercial property has been growing in importance, with rapid growth occurring overseas that has led to substantial changes in the property markets. The New Zealand property industry has been recently introduced to the concept of sustainability, and although still at an early stage is already noticing the accelerating uptake of sustainability in the industry. Although certain measures have been taken by the New Zealand Green Building Council and government mandates, there remains still a common assumption that there is considerable hesitation and skeptism in the market from both an investor’s and a building owner’s perspective.

The research presented in this paper reports on the results of an investigation into the market perception toward sustainable buildings from the investment community in New Zealand. Property developers and investors from New Zealand were surveyed about their perception of sustainable buildings in New Zealand and their actions with regards to their own commercial portfolios, as well as the impact sustainability is having upon investment decisions. This paper presents the results of research conducted into the relationship between the elements of sustainability and the market value of an office building. The paper provides an insight into the rapidly evolving area of sustainability and office buildings, with the emphasis placed on the valuation process that seeks to assess a hypothetical purchaser’s perspective of this relationship.