GREEN IS THE NEW VALUE-ADD

Need proof that green is the future? Related Management prez Jeff Brodsky (whom we snapped with Wildan Energy Solutions' Harry Charalambides at NYU Schack's sustainability conference on Thursday) says going green is the way to add value, and that's saying a lot since value-add is the hottest investment strategy to come out of the downturn. Jeff says new owners can reduce the cost of energy with capital funding, especially now, when money is cheap. (We're willing to give you four whole pennies for every nickel.) "It's the perfect opportunity to make serious change" on a property, says Jeff, whose firm raises energy efficiency on each of its acquisitions by 20% to 25%.
RREEF chairman and Greenprint Foundation CEO Chuck Leitner points out that there's a lack of data on green building values since transactions slowed after '07 (just as efficiency was hitting its stride). We're in a "transaction-light environment," he says. Nevertheless, he adds, the idea that green is where the value's at makes it sound like there's a new definition of investment-grade real estate.
Perkins+Will's Janice Barnes (with colleague Laurie Butler) loved a point made by Mark Hughes of UPenn: To get people to go green, you have three options—make it hipper, cheaper, or mandatory.

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