US Green Building Council
"Greening the Heartland"
Presentation 2007

(April 4, 2007) - John Tintera, Principal, Centaurus Partners, LLC, will present on the topic of "Green Building Valuations As Understood Through Commercial Real Estate Transactions" at the Greening the Heartland conference in Madison, WI, September 12-14, 2007.

Mr. Tintera's presentation will address critical issues in the development, financing, and investment environment for sustainable real estate.

Green buildings may receive a higher economic valuation if building developers and owners find recognized methods to demonstrate increased value.  An examination of comparative sales, cost and income methods of valuation can provide insights into the primary determinants for fair value of commercial real estate. 

In commercial real estate, properties are bought and sold by expectations of future income.  While cost and comparative sales methods are important sources to support the value of a building, the income method is critical for valuation of all commercial real estate whether conventional or green.  Proper valuation of discounted income can be used to generate a capitalization rate for an individual project and provide a basis to compare or benchmark across project types.

Alternative proposed methods of green buildings and triple bottom line initiatives can have an impact on strategic objectives and financial considerations.  Green building initiatives can benefit strategic objectives but do not necessarily contribute to a discounted building valuation.  Increased control and accountability, improved brand management, enhanced perception by employees, clients and suppliers, stipulation of performance contracts and reduced risk are all benefits of green building initiatives which do not easily lend themselves to a discounted cash flow.

Green or sustainable buildings can provide incremental operating efficiencies, but what impact does this have on the fair value of commercial real estate?  It is through the examination of building valuation that green contributions could be identified and standardized.  It is up to sustainable building advocates to master the existing valuation process to demonstrate the measurable impact on fair value of commercial real estate.

Biography: John Tintera is a LEED accredited real estate professional with expertise in market research, feasibility analysis, building program analysis, and knowledge of industry best-practices, along with a focus on discovering hidden value opportunities.  His work experience includes the commercial, healthcare, and seniors housing sectors.  Mr. Tintera has a BS in Accounting from Indiana University and an MA from the Illinois Institute of Technology. 

Additional information about the conference:

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