Lecture 10: Topical Discussions [Siqi Zheng]
Climate risk and insurance market crisis
Leave or rebuild: Is managed retreat an option?
Readings
No readings assigned.
Lecture 11: Policy as a Game Changer for Sustainable Real Estate [Siqi Zheng]
Policy landscape and the impacts on pro forma cash flow
Positive externality and “carrots” policies:
- Subsidies for green buildings
- FAR bonus
Negative externality and “sticks” policies:
- Minimum Energy Efficiency Standards (UK)
- Building performance standard: Local Law 97 (NYC) and BERDO 2.0 (Boston)
- Risk disclosure mandates: Boston Seaport case
- Building energy codes
Readings
Matisoff, D. C., D.S. Noonan, and M.E. Flowers (2016). “Policy Monitor—Green Buildings: Economics and Policies.” Review of Environmental Economics and Policy 10(2): 329–346.
Lecture 12: EDGE: Reinventing Sustainable Real Estate in the Digital Age [Zhengzhen Tan]
[No video or lecture notes available]
This case highlights the journey of EDGE that once fit a traditional real estate business model but has transformed to develop some of the most sustainable buildings in the world with novel digital technologies. By examining the transformation of EDGE, this case explores the potential that digital technology has in advancing sustainable buildings, and the challenges and risks that arise with implementation. Students will learn the following:
- How OVG/EDGE was able to convert sustainability and technology investments into business value; how to build a business model and competitive advantage to capitalize sustainability
- The synergy between digital technology and building sustainability
- How to build capabilities in the development process
Guest speaker: Coen van Oostrom, Founder and CEO of EDGE
Readings
Optional Reading
Porter, M., and J. Heppelmann (2014). “How Smart, Connected Products are Transforming Competition.” Harvard Business Review, November 2014.
