Sustainable Development & Real Estate
What is Real Estate?
Land + Natural +Man-made Improvement
Growth vs. Development
Growth-increase in the output (GDP, income, etc.) Quantitative
Development-improvements in various aspects of political systems, society, and economy
What is real estate development?
Configuring and reconfiguring the built environment
Why do we care about the urban heat island effects?
Increase energy consumption due to high temperature
Elevated emissions of air pollutions and GHG
Impaired water quality
(True/False) Main barriers to investors regarding investing in sustainable buildings are, for example, insufficient financial performance, lack of information, and legal restrictions.
True
Land Characteristics
Physical Characteristics
Immobility
Indestructibility
Uniqueness/ Heterogeneity
Richard Montroy
Economic Characteristics
Scarcity
Location(Area Preference)
Modification(Improvement)-Permanence of investment
According to the article of “Development as poison, what is the most critical side-effect of development ?
Cultural Destruction
Negative effects of real estate development
Consume large amounts of natural resources
Generate waste, air, and water pollution
Land Cover-Turning places into concrete jungles
What is real estate investment and what is its goal?
purchased with the intention of earning income through rental income or resale.
Goal-maximize their wealth by choosing investments that are worth more than they cost
What are the corporate level drivers
●Brand/reputation
●Risk Management
Definition of Sustainable Development
Meeting the needs of the present without compromising the ability of future generations to meet their own needs.
●The burden in the sub-heading of the second part “The white man’s burden” means
a) suffering of white people.
b) a duty of white people to bring the benefits of Western development to the non-Western world.
c) denial of Western technologies to the non-Western world
d) sustaining culture through community.
.
●According to paragraphs 14-15, the rule of modern Western culture is partial and incomplete because
a) some of its characteristics are in conflict with their opposites
b) it is the dominant culture
c) no one challenges it
d) experiential knowledge exists whether we recognize it or not.
●In conclusion, , the author suggests a different development which is
a) to acknowledge that the values of the West are universal
b) to blindly copy the Western model of modernity by the non-Western world
c) to rethink the values and assumptions of modern Western culture
d) to copy the values and beliefs of non-Western culture
b) a duty of white people to bring the benefits of Western development to the non-Western world.
a) some of its characteristics are in conflict with their opposites
c) to rethink the values and assumptions of modern Western culture
When does overshoot occur?
Carrying capacity < Ecological Footprint
What are the ESG factors? And why they are important?
ESG stands for Environmental, Social, and Governance
ESG disclosure helps stakeholders understand how a company is managing ESG risks and opportunities
List External Drivers
●Government incentives
●Finance incentives
●Consumer’s strategic decision
●Environmental & energy certificates
●National standards
Three Pillars
Environment, Social, and Economy
Why the traditional model fails?
●Population growth
●Pollution & Climate Change
●Uneven Development & Inequity
●Cultural Destruction
Three principles of sustainable real estate development
Building compact cities and Green Growth
Reducing Greenhouse gas(GHG) emissions
Reduce urban heat island
Property level drivers
Increased Rental Level
Decreased Property Costs
Decreased Risks
Increased Property Values
Property management vs Sustainable property management
Focuses on daily operations to ensure the property
functions smoothly.
Incorporates sustainability goals into daily operations to focus on long-term energy efficiency and environmental impact.
Sustainability is not a new concept. Then why does it become popular recently?
Awareness of the threats
Media-Ecological disasters
Green movements by NGO
Impact of Population Growth
●Environmental Degradation
○Deplete resources & Generation waste
○Pollution
○Threat to biodiversity & Strain on forest
○Food Insecurity
○Climate Change
●Social & Health Problems
○Health problems
○Poverty
●Urbanization
What are the two attributes of compact city?
Why is it important?
Accessibility to services, employment, and infrastructure
Physical compactness: Dense and proximate development patterns
Functional compactness: Urban areas linked by public transport systems
Shortens intra-urban travel distances
Reduces automobile dependency
Reduces energy consumption
Enables optimal use of resources
Increases efficiency of infrastructure investments
Enhances accessibility to local services
What is Green building?
●A structure that is environmentally responsible and resource-efficient throughout its life cycle.
●Green buildings are designed to reduce the overall impact of the built environment on human health and natural environment
What are the motivations of sustainable property management for communities
sustainable lifestyle, increased property values