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Real Estate Industry Quietly Embracing Green Development, Progressive Investor Reports
Real Estate Industry Quietly Embracing Green Development, Progressive Investor Reports
Published 06-19-07
Submitted by SustainableBusiness.com
New York, June 18, 2007 "“ Although much less public than the major media announcements of the world’s largest corporations, GE and Wal-Mart, the real estate industry is quietly transforming by embracing sustainable business practices and green technologies.
In an analysis of the industry, Progressive Investor reports that 41% of the 300 U.S. real estate investment trusts (REITs) are actively pursuing energy efficiency and green building upgrades and another 27% plan to do so.
Yet, we found that most social/ environmental investors (SRI) aren’t aware of even one investment option in the area that meets their criteria "“ one of the few asset classes that remains a hole for SRI portfolios.
"That will change over the next few years," predicts Rona Fried, Progressive Investor CEO. "Industry leaders are forming a responsible property trade association, creating criteria for certification, integrating green building into the appraisal process and into broker databases," she says.
Progressive Investor identified the following drivers for the trend:
"The benefits will make green ubiquitous over the next two years," says George Caraghiaur, vice president for energy services at Simon Property Group (NYSE: SPG), owner of 300 shopping malls. "We're happy to have caught this trend at the beginning."
6% of commercial developments are LEED-certified, projected to jump to 10% of the market by 2010. Buildings produce 21% of the world's CO2 emissions (38% in the US), more than transportation or manufacturing. About 15 million new buildings will be added by 2015. Commercial buildings, the largest polluter, are expected to grow emissions 1.8% a year through 2030.
A recent United Nations study concluded that green buildings can do more to fight global warming than all curbs on greenhouse gases agreed under the Kyoto Protocol, while saving billions of dollars.
For now, US investors can gain exposure to the sector through the Forward Progressive Real Estate Fund (FFREX), the first SRI REIT mutual fund, and through about two dozen individual securities, including Simon Property Group (NYSE: SPG), Weingarten Realty Investors (NYSE: WRI), Prologis (NYSE: PLD) and SL Green Realty (NYSE: SLG).
Outside the US, leaders include Investa Property Group (IPG.AX), Australia's largest owner of prime grade office space, Lend Lease (LLC.AX), Land Securities (LAND.L), British Land (BLND.L) and SEGRO (SGRO.L), in the UK.
Progressive firms are increasingly focused on urban infill buildings rather than suburban greenfields and incorporating advanced energy efficiency measures, as well as recycled building materials, gray water systems, rainwater capture and green roofs, the report says.
Progressive Investor is a monthly newsletter that guides investors and advisors toward sustainable investments. It covers all renewable energy sectors, healthy lifestyle, green building and more. http://www.sustainablebusiness.com/progressiveinvestor/index.cfm
