In collaboration with the Appraisal Institute, the Institute for Market Transformation has released the second edition of a comprehensive guide to factoring energy performance into commercial and multifamily real estate valuation, Recognition of Energy Costs and Energy Performance in Real Property Valuation.
This updated version acknowledges the increased awareness of and demand for energy-efficient and green buildings in the current market, and aims to provide appraisers with a better understanding of the effects of energy performance on property value.
To help appraisers analyze and use information about buildings’ energy performance, the report demonstrates how energy efficiency affects the bottom line, assesses the credibility of supporting information, and gives suggestions of how appraisers can position themselves to recognize potential market reactions to energy performance. It includes information on:
--How to assess energy performance in buildings.
--How to benchmark building energy performance.
--How to assess the qualifications and professional responsibility of preparers of energy-performance documentation.
--How the market assigns value to energy performance in buildings.
The guide also includes an appendix, which presents an overview of common energy-efficient measures, including sections on insulation, windows, lighting, and heating, ventilation, and air-conditioning systems. For a free copy of the guide, click here.