BTL Mark: Resolve interoperability issues & increase buyer confidence
Building Energy Performance - part of the due diligence?
Source: several articles
Below are some links with brief descriptions of how the Building Energy Performance Index BEPI may become part of the due diligence.
Coming (Soon) to a Building Near You: Mandatory Energy Disclosure for
Real Estate Jonathan P. Scoll
In the near future, the owner of a commercial building in Minnesota may be required to provide a purchaser, lender or prospective tenant a detailed disclosure of the building’s energy performance. Such disclosure might even include a ranking or scoring of its performance in relation to other buildings in its peer group.
What is evolving today through voluntary due diligence practice may, very likely, soon be mandated by law. How soon this happens depends on energy politics. Now in effect in other parts of the country, compulsory energy performance disclosure is headed for Minnesota, either as a consequence of federal energy or climate legislation or through state or local regulation. Meanwhile, with escalating energy costs, the marketplace already demands sophisticated energy performance disclosure.
This process, often referred to as Green Building Due Diligence, differs
In fact, some institutional investors and lenders now evaluate a
building’s energy usage as part of their standard due diligence.In addition,
there is a nationwide trend toward greater transparency of energy usage,
especially in light of increasing
energy costs. Certain benefits of energy-efficient buildings are irrefutable.
These buildings typically have lower operating costs,
greater occupancy and rental rates, and higher sales prices than non-green
buildings. Purchasers, tenants and financiers of
commercial properties likely will pay more attention to these important
realities in the coming months and years.
The standard, Building Energy Performance Assessment for a Building Involved in a Real Estate Transaction (ASTM Wk24707) (BEPA), is expected to be adopted this fall. Essentially, the BEPA standard addresses how to gather information on building energy performance so the user can make the best use of available benchmarking or green building standards, including Energy Star, the Capital Markets Partnership Green Value Score, and Leadership in Environmental and Energy Design, among others, to fulfill disclosure obligations (18 EDDG 35, 5/21/09)http://www.bepinfo.com/images/pdf/BNADueDeligence.pdf
VALUING BUILDING ENERGY EFFICIENCY THROUGH DISCLOSURE AND UPGRADE POLICIES
One key tool – mandatory building energy ratings – seeks to transform markets by requiring that meaningful information about building energy performance be disclosed to potential buyers, renters and the public.
[Click Banner To Learn More]
[Home Page] [The Automator] [About] [Subscribe ] [Contact Us]