LOS ANGELES—There are so many obvious factors affecting commercial real estate deals, such as supply and demand, capital availability and location. Yet there are also asset-specific issues that can significantly impact transactions. These include environmental issues, the asset’s physical condition and energy performance.
It’s the latter subject that Tonu Liou, president of Partner Energy, discussed in depth during a conversation with ALM Real Estate Media Group editor-in-chief Sule Aygoren. Specifically, he referred to a white paper GlobeSt.com had done with Partner Engineering and Science Inc. gauging the industry’s take on these issues in an attempt to identify risks and opportunities in commercial real estate.
One of the more interesting findings, says Liou, is that the market is increasingly embracing energy efficiency factors. For instance, 60% of survey participants felt there was a direct ROI with implementing energy efficiency projects, and a good majority of those surveyed see future savings energy efficiency efforts, so they don’t mind investing in it now. Eventually, sustainability and energy-efficient assets will become the norm. Check out the video for more.