by Brianna Crandall — November 1, 2013—U.K.-based RICS, the Royal Institution of Chartered Surveyors, has published a global guide called Sustainability and Commercial Property Valuation, 2nd Edition , that provides member valuers as well as purchasers with the tools to determine the effect that the sustainability factors of a commercial building will have on its value.
Sustainability-related property characteristics are increasingly a factor in the cost valuation of a property, and are only set to further impact valuations in the future, notes RICS. As a result, the organization says that commercial property valuers will need to incorporate sustainability factors that could influence investments into valuation assessments. The new publication provides guidance on a broad range of physical, environmental and social factors involved in sustainability.
In equipping valuers with the knowledge to assess the risks and benefits associated with the sustainability characteristics of a building, the RICS publication guides them through the process of producing a valuer’s statement. By providing a statement of the valuer’s opinion on the potential impact of these factors, the relative impact of sustainability issues to relative property values over time can be predicted, says RICS.
In addition, the assessment will allow purchasers to be well informed during decision-making on price offering, contract negotiations and investment agreements, notes RICS.
The publication is available for download by RICS members.
