This peer-reviewed article was published in Appraisal Journal.
Abstract:
Green building demand continues to increase. Policies, incentives and regulations that affect the demand for green buildings are widespread and emanate from the federal, state, and local levels. This article discusses the influence of rebates, financing, and tax incentives. Rebates and incentives reduce the cost disparity between conventional and green commercial buildings. In valuation, these should be considered to the extent they are commonly available to all market participants at the time of the appraisal. Understanding the market’s perspective on incentives as well as the extent of their availability is critical to properly addressing the market value impact of green building incentives.