Lecture 1: Introduction: The Why of Sustainability in Real Estate [Siqi Zheng, Zhengzhen Tan, Juan Palacios]
[No video or lecture notes available]
Sustainable Real Estate Course Overview
Economics
- Energy efficiency: Energy consumption and emission by buildings
- The economics of green buildings: tools, policy, ESG
- Sustainability 2.0: Healthy building
- Sustainable 3.0: Climate resiliency
Knowledge structure: connecting economics and business
- Sustainable real estate as business strategy
- Sustainable design
Logistics of this course
Readings
No readings assigned.
Lecture 2: The Economics of Green Buildings, part 1 [Siqi Zheng]
How the market may work: The business case for green buildings:
- Triple bottom lines: Developers, owners, tenants
- Building asset cash-flows and risk: hypothetical and Rockville pro forma
- Life cycle cost-benefit analysis: impacts of greenness on pro forma by stakeholders
How the market may fail: Market failure and correction (1): Information asymmetry:
- Information asymmetry and adverse selection
- Green building certificates
- Benchmarking and transparency policies
Readings
World Green Building Council. (2013). “The Business Case for Green Building: A Review of the Costs and Benefits for Developers, Investors, and Occupants” (PDF).
Harvard Business School. Rockville business case.
(If no real estate finance background) Chapter 10 of Geltner, D., N.G. Miller, J. Clayton, and P. Eichholtz (2014). Commercial Real Estate Analysis and Investments, third edition. Mbition LLC. ISBN: 9781133108825.
Lecture 3: The Economics of Green Buildings, part 2 [Siqi Zheng]
Building decarbonization: The technology side:
- Passive house
- Building electrification: heat pump
Building decarbonization: the people side: landlord vs. tenant:
- Market failure and correction (2): Split incentive and green lease
- Rockville building case, revisited
- Scope 1-2-3: whose carbon is it?
Readings
Institute for Market Transformation (2018). “Green Lease Leaders: Using the Lease to Drive Innovation and Clean Energy.”
