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Why Green is Good and Brown is Down

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A leading real estate voice explains why sustainability is becoming a financial imperative in today’s evolving property market.

Published: September 2024

Author: Paul Morassutti, Chairman, CBRE Canada

Format: Article

Estimated Reading Time: ~10 minutes

Why We Recommend It?

This article from CBRE Canada, the country’s largest commercial real estate brokerage, provides a high-level market perspective on why sustainable buildings are not just environmentally responsible—but financially and competitively advantageous. It highlights how green-certified buildings are commanding premiums in valuation, leasing, and demand, while “brown” buildings face growing market and regulatory risk. The article calls for making longer-term investment decisions that align with market trends—capitalizing on emerging opportunities while avoiding future costs and risks.

Audience-Specific

  • Green buildings are achieving higher rental rates, occupancy levels, and resale values.
  • Regulatory and market trends suggest that “brown” buildings (high carbon, low efficiency) will struggle to retain value.
  • Partnering with appraisers who understand green premiums to secure better financing and resale outcomes.
  • Market demand is shifting toward sustainable design choices, with long-term financial benefits.
  • Integrating sustainability into projects helps future-proof designs and align with client investment goals.
  • Staying ahead of low-carbon materials and energy efficiency strategies strengthens your market value.
  • Sustainable buildings are proven to deliver tangible value to owners and will be in growing demand as market expectations rise.
  • “Brown” buildings are increasingly at risk of devaluation, potential obsolescence, and future regulatory costs.
  • Delivering sustainable results cost-effectively offers a strong competitive advantage in a shifting construction landscape.

Next Steps & Related Reading...

  • Still exploring the value of green buildings? Dive deeper into our Business Case section for insights from different perspectives—or check out our Case Studies for real-world examples that bring the numbers to life.
  • Ready to move forward? Visit the Carbon Neutral Buildings section to dive into key concepts and practical strategies—or explore our Resource Library to find topics that matter most to you.

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