Value Beyond Cost Savings - Green Building Finance Consortium

Appendix GSustainable Property Cost-Benefit ChecklistPotential Property Benefits Description of Benefit Applicability Analysis 106have significantly lower take-out risk.projects, but it is important not to overestimate themagnitude of this benefit, given the many other factorsthat affect investor and space user demand on anyparticular project. The best evidence of these benefits willbe information that is supportive of the key economicarguments given the subject property’s specific attributes.C. Increased Space User DemandA potential increase in demand for a sustainable propertyby space users is one of the most important benefits that aproperty can achieve. 112Space User demand will be enhanced from at least thefollowing segments of potential space users:1. Those significantly influenced by EnterpriseValue;2. Government tenants with sustainability mandates;3. Vendors/suppliers encouraged/required bycustomers to consider sustainability;4. Space Users with direct ties to sustainability5. Friends of sustainability.The process for evaluating enhanced Space UserDemand, and the ability of an owner to monetize thesebenefits through higher rents, occupancies, fasterabsorption, etc., starts with an assessment of the types ofspace users (tenants or owner occupants) expected at aproject. What key issues drive these particular types oftenants? Are they influenced by their internal or externalcommitments to carbon disclosure or reduction? Do theycare about potential health or productivity benefits? Is anenvironmentally-socially responsible reputation importantto them, or their customers or employees?Once an understanding of the key drivers of potentialspace users is established, the next step is to assess thelikelihood of whether the subject property will generate thetypes of sustainable outcomes-building performanceimportant to expected occupants. Some of the keysustainable property outcomes that generate enterprisevalue include:Reduction in resource use• Reduction in energy and water use• Reduction in building waste• Reduction in pollution emissions• Reduction in carbon footprintReduction in enterprise costs• Reduction in churn costs112 “Space user” is a term we use to describe the occupants or users of real estate. It is a term that includes corporate or non-corporate occupants, tenants, retail customers or othernon-owner or tenant users of space.259