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In recent years, sustainability considerations in the real estate sector have moved from being a niche market phenomenon to a mainstream trend. The movement has been accompanied by a shift in the industry’s perception of sustainable buildings. Traditional cost-saving goals are now complemented by a growing interest in the potential for sustainable buildings to tackle broader economic and social sustainability challenges as well as issues related to health and well-being. The real estate industry is increasingly expected to adapt its strategies to incorporate new and more stringent environmental and urban development requirements, to cater to shifting demographics, and to utilize new advancements in construction processes and materials. This chapter explores recent research on sustainable real estate and highlights some of the newest trends in the market. The chapter then examines how policy and technological advancements can enable real estate developers to tackle environmental, social, and economic sustainability challenges. This will be exemplified through a focus on carbon taxation and timber construction. Based on these case studies, the chapter illustrates how today’s sustainable real estate sector – marked by its move beyond a focus on cost savings – requires for building practices to be strongly rooted in global, sustainable development policies.

Sustainable features are gradually becoming important considerations by commercial real estate users. This is because of their considered impact in reducing operating costs and potential at reducing the negative impacts of buildings on human health and the natural environment. This chapter sought to examine the demands for sustainable features by users of commercial real estate like offices in Lagos State, Nigeria. It also evaluated the factors influencing demand for them to achieve value for money and enhance real estate investment decisions. The quantitative research methodology was adopted, and primary data were collected via questionnaires distributed to 134 purposively selected estate surveying firms in the study area. Ninety-five representing (70.9%) were returned and found useable and were analysed with the aid of descriptive statistics of percentages, mean and relative willingness index. The study found that power/energy-saving features are in high demand as alternatives to the epileptic nature of power supply in the country. The study recommended the need for the government to encourage the adoption and incorporation of locally made sustainable features in commercial real estate and to subsidise them for use in the Lagos commercial real estate market. Thus, it is concluded that with the right environment created by policy makers, sustainable features in buildings have huge potentials to contribute to prevent environmental problems in an emerging commercial real estate market like Nigeria.

The purpose of this paper is to understand both the facts and the values associated with the breadth of issues, and the principles related to sustainable real estate for institutional investors. Sustainable real estate is a growing sector within the commercial real estate industry, and yet, the decision-making practices of institutional investors related to sustainability are still not well understood. In an effort to fill that gap, this research investigates the post-global financial crisis (GFC) motivations driving the implementation of sustainability initiatives, the implementation strategies used, and the predominant eco-indicators and measures used by institutional investors.

This paper presents the results of a three-round modified Delphi study conducted in the USA in 2011-2012 investigating the nature of performance measurements and reporting requirements in sustainable commercial real estate and their impact on the real estate decision-making process used by institutional investors. Two rounds of in-depth interviews were conducted with 14 expert panelists. An e-questionnaire was used in the third round to verify qualitative findings.

The key industry drivers and performance indicators influencing institutional investor decision making were associated with risk management of assets and whether initiatives can improve competitive market advantage. Industry leaders advocate for simple key performance indicators, which is in contrast to the literature which argues for the need to adopt common criteria and metrics. Key barriers to the adoption of sustainability initiatives are discussed and a decision framework is presented.

This research aims to help industry partners understand the drivers motivating institutional investors to uptake sustainability initiatives with the aim of improving decision making, assessment, and management of sustainable commercial office buildings.

Building on the four generations of the sustainability framework presented by Simons et al. (2001), this research argues that the US real estate market has yet again adjusted its relationship with sustainability and revises their framework to include a new, post-GFC generation for decision making, assessment, and management of sustainable real estate.

The purpose of this chapter is to investigate the adoption and use of building information modelling (BIM) for residential real estate development in Nigeria (using Lagos as a case study), with a view to providing information towards improving BIM uptake, which could enhance sustainable housing delivery in the country. A quantitative research methodology was adopted involving the use of questionnaire survey to collect primary data. The data were obtained from private real estate developers in Lagos State. The self-administered questionnaire was distributed to all the 72 active real estate developers in the study area, and the response rate was 62.5%. The collected data were analysed using statistical tools such as frequency and percentages, mean rating and chi-square. The results revealed a low level of awareness and usage of the transformative and contemporary BIM technology (6D BIM version) by real estate developers. It was established that the 2D and 3D BIM traditional versions were the most utilised across the phases of real estate development process. It was also found that the level of BIM utilisation has a significant relationship with the age and asset base of the real estate developers. The chapter concludes by advocating increase in the asset base and organisational profile of real estate developers to enhance BIM adoption, especially, the 6D BIM, which could facilitate sustainable real estate development.

The purpose of this paper is to determine if there is an impact of sustainability on the market in terms of a green premium or a brown discount on the price of commercial and residential real estate. It also seeks to identify the incentives and barriers for sustainable developments perceived by real estate professionals.

The paper investigates the impact of sustainability features on the valuation of buildings in the United Arab Emirates (UAE). The study uses a qualitative structured questionnaire to determine the views of certified real estate valuers and advisors on this subject.

The results suggest a green premium of at least 1% in the UAE, coming from both supply-side and demand-side, and in commercial and residential sectors. Key barriers for the recognition of green building value include availability of reliable market data, lack of relevant technical skills and apparent client disinterest. Initiatives that would encourage green buildings include financial incentives for key stakeholders, raising and enforcing building standards, and higher energy prices. This paper identifies policy measures that local authorities may consider in transforming to a more sustainable economy. It is expected that such changes would convey to the real estate industry and affiliated stakeholders the financial benefits to be gained from investing in green buildings.

The UAE is not a transparent environment in terms of building prices and rents, and it can be challenging even for experienced professionals to determine whether an observed higher value can truly be considered a green premium. The second issue is that the results may be affected by a “voluntary response bias”, whereby recipients who are interested in sustainability are more likely to have responded to the survey.

This paper identifies policy measures that local authorities may consider in transforming to a more sustainable economy. It is expected that such changes would convey to the real estate industry and affiliated stakeholders the financial benefits to be gained from investing in green buildings.

Most research exploring the value of green buildings originates from developed economies and its applicability to the Middle East is questionable due to its differing origins and unusual development path. This article offers new insights into an under-researched market.

A green agenda has become a growing subject throughout an increasing number of European listed real estate companies over the last decade. The focus on sustainability is presumably not only goodwill or legislation driven but is rather a benefit driven action to achieve an economic surplus. The purpose of this paper is the development of an adequate sustainability definition, the investigation of the effect of a sustainability agenda on a company level, and the identification of possible financial benefits.

This is an explorative qualitative and quantitative study. First, the authors developed a four‐bottom‐line real estate sustainability agenda in accordance with the guidelines of the European Public Real Estate Association and the Global Reporting Initiative. Second, the study examines 80 European listed real estate companies from 2006 until 2009, and third, the study applies a panel analysis with conditional and unconditional regression techniques.

After classifying firms across different levels of sustainability intensity and quantifying the impact of an intensive green agenda the authors found a positive linkage between a green agenda and a green performance, especially in terms of an increased ability to generate revenues and a decreased level of idiosyncratic stock volatility. As a result, green commitments are not merely altruisms but are economically driven instead.

This paper gives, to the authors' knowledge, a first insight of how European real estate listed companies behave in terms of corporate social responsibility. The study contributes to the theoretical literature of corporate sustainable real estate companies by establishing an economic transmission mechanism as well as providing empirical evidence in favour of responsible activities.

Given the growing market awareness concerning responsible investments in recent years, the purpose of this paper is to bridge the gap between real estate companies which implemented a corporate social responsibility (CSR) agenda and the possible role within a multi‐asset portfolio optimisation framework. The behaviour of the asset class sustainable real estate (SRE) together with its diversification characteristics are the main focus.

The study is an explorative empirical analysis applying a portfolio optimisation algorithm. First, the authors developed a sustainable real estate index comprehending listed real estate companies from 2004 until 2010 acting in line with a CSR agenda. Second, the authors introduced SRE into the opportunity set of an UK investor and finally, generated the theoretical optimal asset allocation of SRE within different risk‐return portfolios.

The unique risk‐return pattern of SRE enables the asset class to be allocated across all portfolios ranging from low to high risk along the efficient frontier. In the low‐risk levels, SRE behaves as a diversifier whereas in the medium‐ to high‐risk portfolios SRE is represented as the main allocated asset. Sustainable real estate thus offers opportunities to numerous investors in view of their investment preferences and corporate strategies.

The results could encourage institutional investors to take investments in CSR‐driven listed real estate companies into account and to rethink their strategic asset allocation approach in view of the identified asset characteristics and the behaviour within a portfolio framework.

The paper provides a first insight in the field of portfolio management by introducing SRE into the opportunity set of a UK investor. The study raises SRE to an aggregated level and delivers theoretical as well as empirical evidence of the role sustainable real estate is playing within a multi‐asset portfolio.

The paper seeks to describe the historical development, current status, and operation of real estate law and policy in Nigeria in the context of global requirements for sustainable development.

The paper takes the form of a literature and legislative review. It examines the existing real estate law and policy (Land Use Act No. 6 of 1978) in Nigeria. The relevance of sustainable development to real estate laws and policy is highlighted. A brief comparative study of land issues in Nigeria and some developing nations is also included.

The existing real estate law and policy in Nigeria is inadequate to meet the aspirations for sustainable development.

The paper makes recommendations geared towards appropriate real estate laws and policies for sustainable development in Nigeria.

The paper contributes to the critique on the existing real estate laws and policies in Nigeria. Based on tenets of sustainable development, it offers useful guidance on future formulation of real estate law and policy, in particular community participation, setting of different time periods, and the targets that each period must realize.

In the increasingly hostile operating environment, corporate real estate (CRE) executives are beginning to recognise the importance of sustainability within their freehold property portfolios. To assist in decision‐making, external valuations are regularly commissioned. The purpose of this paper is to examine the practical difficulties associated with incorporating sustainability criteria in the valuation methodology as valuation outcomes inform CRE decision‐making at strategic and tactical levels.

This paper takes the form of a detailed and critical literature review.

It is widely acknowledged that sustainability has become a key driver of many business decisions. Corporate entities can achieve a considerable range of tangible and intangible benefits from sustainable real estate in their freehold portfolios. While substantial progress has been made toward understanding the dynamics of the sustainable real estate market, the valuation of such assets is rather hampered by the comparative difficulties in achieving consensus regarding the sustainable criteria and how they should be objectively assessed.

The paper contributes to the broader appreciation of the theoretical and practical difficulties associated with identifying and assessing appropriate sustainable criteria. Importantly, the paper highlights the need for greater understanding of the criteria in the evolving valuation methodology framework.

The concept of sustainability has become increasingly essential to property development, especially in recent years. The purpose of this paper is to assess the level of sustainability practices among listed property companies in Malaysia.

Using content analysis, company websites and annual reports, the level of sustainable practices among property companies in Malaysia will be examined and assessed. The paper will also rigorously assess the sustainability strategies employed by using an attributes scorecard, which takes into account several attributes concerning sustainability issues.

The findings have showed sustainable property development concept among listed property companies can be categorised as low level, although this is increasing.

Given the increasing significance of sustainability issues – especially in property development – this paper provides a more informed investment decision strategies regarding the implementation of the sustainability concept in property portfolio; a consideration that has increasingly come into focus amongst international property actors.