Wind Farm Announcements and Rural Home Prices: Maxwell Ranch and Rural Northern Colorado

430 Pages·2012·3.13 MB·English

The Journal of
Sustainable Real Estate
2010
Volume 2
Number 1
Editorial Board
Editor
Norman G. Miller
University of San Diego
Associate Editors
Kwame Addae-Dapaah
National University of Singapore
Nico B. Rottke
European Business School
Robert Simons
Cleveland State University
Grant Austin Richard Loope
Institute of Green Professionals Arizona State University
Michel Boudrias Isaac Megbolugbe
University of San Diego Johns Hopkins University
Richard Reed Helen Neill
Deakin University University of Nevada–Las Vegas
Sofia Dermisi Andrew J. Nelson
Roosevelt University RREEF Real Estate
Tim Dixon Gary Pivo
Oxford Brookes University University of Arizona
Frank Fuerst Darren Pum
University of Reading University of Nevada–Las Vegas
Angela Guggemos Karl-Werner Schulte
Colorado State University University of Regensburg
Rebecca Henn Grant Thrall
University of Michigan University of Florida
Jerry Jackson Ron Throupe
Texas A&M University University of Denver
John Kilpatrick Charles Tu
Greenfield Advisors LLC University of San Diego
Dan Kohlhepp Bing Wang
Johns Hopkins University Harvard University
Nils Kok Elaine Worzala
Maastricht University Clemson University
Steve Laposa
PriceWaterhouseCoopers
Contents
Preface
Foreword
1 GreenonBuildings:TheEffectsofMunicipalPolicyonGreenBuildingDesignationsin
America’sCentralCities
EugeneChoi
23 CorporateRealEstateandCorporateSustainabilityReporting:AnExaminationand
CritiqueofCurrentStandards
StevenP.LaposaandSriramVillupuram
51 TheOperationsandManagementofGreenBuildingsintheUnitedStates
NormanG.Miller,DavePogue,JeryldineSaville,andCharlesTu
67 CarbonMarkets:AHiddenValueSourceforCommercialRealEstate?
AaronG.BinkleyandBrianA.Ciochetti
91 IndoorAirQualityandOfficePropertyValue
KwameAddae-Dapaah,ThamKokWai,MohdJaafarBinDollah,andYvonneFoo
117 LocationEfficiencyandMortgageDefault
StephanieY.Rauterkus,GrantI.Thrall,andEricHangen
143 CapitalMarketsandSustainableRealEstate:WhatArethePerceivedRisksand
Barriers?
LouisA.GaluppoandCharlesTu
161 Uncertainty,RealOptionValuation,andPoliciestowardaSustainableBuiltEnvironment
EmielvanderMaaten
183 Owner-TenantEngagementinSustainablePropertyInvesting
GaryPivo
201 TheChallengesofIdentifyingandExaminingLinksbetweenSustainabilityandValue:
EvidencefromAustraliaandNewZealand
GeorgiaWarren-MyersandRichardReed
221 IntegratingSustainabilityandGreenBuildingintotheAppraisalProcess
TimothyP.RundeandStaceyToyre
249 ImplementingESGinPrivateRealEstatePortfolios:TheCaseofU.S.andPan-Europe
CoreFundManagers
TamaraLarsen
269 ReducingGreenhouseGasesfromBuildingsintheSanDiegoRegion:AnAnalysisof
LocalGovernmentPolicyOptions
ScottAnders
305 EnergyEfficiencyImprovements:DotheyPay?
BrianA.CiochettiandMarkD.McGowan
385 TeachingSustainability:ApplyingStudioPedagogytoDevelopanAlternativePost-
HurricaneHousingSolutionUsingSurplusShippingContainers
PernilleChristensenandElaineWorzala
361 ‘‘Hey,YourTreeIsShadingMySolarPanels’’:California’sSolarShadeControlAct
ScottAnders,TaylorDay,andCarolynAdiKuduk
383 WindFarmAnnouncementsandRuralHomePrices:MaxwellRanchandRural
NorthernColorado
StevenP.LaposaandAndrewMueller
(cid:2) (cid:2)
JOSRE Vol. 2 No. 1 – 2010
The Board of Directors of the American Real Estate Society extends its deep
appreciation to:
(cid:2)
University of San Diego, Burnham Moores Real Estate Center for its support
of the editorial functions of the American Real Estate Society;
(cid:2)
Florida Gulf Coast University, for its support of the editorial functions of
the American Real Estate Society;
(cid:2)
Florida International University, for its support of the Director of
Publications functions of the American Real Estate Society; and
(cid:2)
Kennedy Wilson, for its support of the Executive Director functions of the
American Real Estate Society.
2011 Membership
Academic ($135), Professional ($300), Academic Library ($600), Corporate
Library ($600), Student or Retired Academic ($85), Corporate ($600), Sponsor
($1,500), Regent ($3,000) and President’s Council ($6,000). Additional
membership options are available. See the 2011 Membership Form in the
back of the journal. Checks should be made payable to ARES and
correspondence should be addressed to: Diane Quarles, Clemson University,
College of Business & Behavioral Science, Dept. of Finance, 424 Sirrine Hall,
Clemson, SC 29634-1323. Phone: [phone]; Fax: [phone]. Website:
www.ARESnet.org or [email protected].
The Journal of Sustainable Real Estate (1949-8276) is published annually by
the American Real Estate Society at Clemson University, School of Business
and Behavioral Science, Department of Finance, 424 Sirrine Hall, Clemson,
SC 29634-1323. Postmaster, please send address changes to: Diane Quarles,
Clemson University, School of Business and Behavioral Science, Department
of Finance, 424 Sirrine Hall, Clemson, SC 29634-1323. Changes of address,
claims and all correspondence dealing with subscriptions should be sent to
Diane Quarles, Manager of Member Services, Clemson University, School of
Business and Behavioral Science, Department of Finance, 424 Sirrine Hall,
Clemson, SC, 29634-1323. Phone [phone], Fax [phone] or email
[email protected]. For more information, visit our website: www.
ARESnet.org.
2010 American Real Estate Society
President’s Council
Appraisal Institute Counselors of Real Estate (CRE)
CCIM Institute Institutional Real Estate, Inc.
Cornerstone Real Estate Advisers, Inc. Prudential Real Estate Investors
CoStar Group
Regents
Argus NYU Schack Institute of Real Estate
Blackrock Financial Management Property and Porfolio Research, Inc.
Colvin Institute of Real Estate Richard H. Pennell Center for Real
Development Estate Development–Clemson University
Department of Real Estate, Baruch Real Capital Analytics
College Roulac Global Places LLC
Edward St. John Department of Real UBS
Estate at Johns Hopkins University
University of Cincinnati College of
Freddie Mac Business
LaSalle Investment Management
National Association of Real Estate
Investment Trusts (NAREIT)
Sponsors
Bailard, Inc. Jerome Bain Real Estate Institute at
Florida International University
Burnham-Moores Center for Real Estate–
University of San Diego Johns Hopkins Carey Business School of
Business
CBRE Econometric Advisors
Kennedy Wilson
Cengage Learning
NAIOP Research Foundation
Charles River Associates
National Association of REALTORS(cid:3)
Clarion Associates, Inc.
(NAR)
Dearborn Real Estate Education
National Investment Center for the
Dividend Capital Research LLC
Seniors Housing & Care Industry (NIC)
Emerald Group Publishing Limited
National Multi Housing Council (NMHC)
GIC Real Estate Pte., Ltd.
Real Estate Center at DePaul University
Graduate School of Real Estate Studies–
KonKuk University
2010 Fellows of the American
Real Estate Society
Endowed International Scholar Sponsorship
Arthur L. & Helen Beckett Schwartz
Endowed Doctoral Sponsorships
Youguo, Lucy, Michelle, and Mia Liang
Glenn R. and Jan H. Mueller
Theron R. and Susan L. Nelson
Michael J. and Vicky L. Seiler
Benefactors
Stephen A. Pyhrr Seung Woo Shin
Kennedy Wilson Konkuk University
Karl-Werner Schulte
University of Regensburg
Distinguished Fellows
Jospeh D. Albert Christopher A. Manning
James Madison University Loyola Marymount University
John D. Benjamin Norman G. Miller
American University CoStar & University of San Diego
Susanne E. Cannon Nico B. Rottke
DePaul University European Business School
Bart Danielsen Robert A. Simons
North Carolina State University Cleveland State University
Don Dorechester Jay Spivey
Cushman & Wakefield CoStar Group
Andrew C. Florance Zhong Y. Tong
CoStar Group U.S. Department of the Treasury
Karl L. Guntermann John E. Williams
Arizona State University Morehouse College
Alex Klatskin Elaine M. Worzala
Forsgate Industrial Partners Clemson University
Mark L. Levine
University of Denver
Marc A. Louargand
Saltash Partners
Fellows
Randy I. Anderson Charles Carter
University of Central Florida Florida Atlantic University
Michael A. Anikeeff Karl E. Case
Johns Hopkins University Wellesley College
John S. Baen Lijian Chen
University of North Texas UBS Realty Investors
Edward A. Baryla Ping Cheng
East Tennessee State University Florida Atlantic University
Donald H. Bleich Marvin F. Christensen
California State University–Northridge RREEF
Steven C. Bourassa James W. Coleman
University of Louisville Wright State University
M. Gordon Brown Marsha Courchane
Eindhoven University of Technology Charles River Associates
Todd A. Canter Stephen Crosson
LaSalle Investment Management Crosson Dannis, Inc.
2010 Fellows
( con ti nu ed )
Charles G. Dannis Graeme Newell
Crosson Dannis University of Western Sydney
Karen G. Davidson Joseph L. Pagliari, Jr.
Davidson & Associates/UCLA Extension University of Chicago
James R. DeLisle Ruijue Peng
University of Washington Property and Portfolio Research
David H. Downs Rudy R. Robinson, III
Virginia Commonwealth University Austin Valuation Consultants
Donald R. Epley Mauricio Rodriguez
University of South Alabama Texas Christian University
Howard Finch Stephen E. Roulac
Florida Gulf Coast University Roulac Global Places LLC
Michael Gately Ronald C. Rutherford
Cornerstone Real Estate Advisers, LLC University of Texas–San Antonio
Paul R. Goebel Sean P. Salter
Texas Tech University Middle Tennessee State University
Hany Guirguis David Scribner, Jr.
Manhattan College Baruch College/CUNY
Otis E. Hackett G. Stacy Sirmans
Otis E. Hackett & Associates Florida State University
Thomas W. Hamilton Ronald Spahr
University of St. Thomas University of Memphis
William G. Hardin, III Thomas M. Springer
Florida International University Clemson University
Jack Harris Mark Sunderman
Texas A&M University/Retired University of Memphis
David Harrison Robert Taylor
Texas Tech University Virginia Commonwealth University
Michael J. Highfield Stephen F. Thode
Mississippi State University Lehigh University
Aart C. Hordijk Grant I. Thrall
Tilburg University/TiasNimbas University of Florida
Mingjun Huang Ronald L. Throupe
Property and Porfolio Research, Inc. University of Denver
Forrest E. Huffman Raymond G. Torto
Temple University CB Richard Ellis
L. Jide Iwarere Raymond Y.C. Tse
Howard University Hong Kong Institute of Real Estate
Thomas O. Jackson Ko Wang
Texas A&M University Baruch College/CUNY
Ken H. Johnson H. Shelton Weeks
Florida International University Florida Gulf Coast University
G. Donald Jud Margot B. Weinstein
University of North Carolina–Greensboro MW Leadership Consultants
Ronald W. Kaiser Robert M. White, Jr.
Bailard, Inc. Real Capital Analytics, Inc.
John Kilpatrick Richard Wincott
Greenfield Advisors PricewaterhouseCoopers
Steven P. Laposa Daniel T. Winkler
Colorado State University University of North Carolina–Greensboro
Joseph B. Lipscomb Larry E. Wofford
Texas Christian University University of Tulsa
Emil Malizia Zhonghua (George) Wu
University of North Carolina–Chapel Hill Florida International University
Asieh Mansour Charles H. Wurtzebach
RREEF DePaul University
John F. McDonald James Young
Roosevelt University University of Auckland
Willard McIntosh Leonard V. Zumpano
Fund Evaluation Group University of Alabama
JOSRE Advisor y Board
Ray Anderson David Lorenz
Interface Global Lorenz Property Advisors
Scott Anders Marc Louargand
University of San Diego Saltash Partners
Aaron Binkley L. Hunter Lovins
AMB Property Corporation Natural Capitalism Solutions (NCS)
Stuart Brodsky Asieh Mansour
GE Real Estate RREEF
John Crews Scott Muldavin
Jones Lang LaSalle The Muldavin Company, Inc.
Dale Dekker David Pogue
Dekker/Perich/Sabatini CB Richard Ellis
Brian Dunbar Mark Robinson
Colorado State University Hines
Richard Epstein Jay Spivey
RNL Design CoStar
Andrew Florence Leanne Tobias
CoStar Group, Incorporated Malachite LLC
Doug Gatlin Cathy Turner
U.S. Green Building Council New Buildings Institute (NBI)
Lydia Jacobs-Horton B. Alan Whitson
Procter & Gamble RPA
Kent Jeffreys Sally Wilson
International Council of Shopping CBRE
Centers
Jim Young
David Jellison Realcomm
Liberty Property Trust
Jerry Yudelson
Stephen Kapp Yudelson Associates
California Center for Sustainable
Energy
Preface
(cid:2)
Journal Changes and Key Contacts
This is the second volume and full issue of theJournal of Sustainable Real Estate.
Beginning with this edition, we will print a small number of copies, although the
bulkofourdistributionwillbeelectronic.Seasonedprofessionalslikemyselfoften
have concerns with a real journal that is purely electronic, so let me assure you
that the academic review process, editing process and copy-editing process is
identical to that of the traditional ARES print journals. There are a few significant
differences, including some advantages. First, with an online publication, we have
the ability to produce a four-color publication. Second, we can also accept links
embedded into the papers or footnotes that provide additional information. If you
do provide a link, it must not be to promote or sell a product or service, but
simply to offer additional information or resources. An exception might be a book
link, i.e., where to buy a book mentioned in the paper or a non-profit organization
event. Third, we eliminate the need to use vast amounts of paper and incur other
printing and shipping costs.
A new feature of this Journal is the posting of ‘‘Industry Perspectives’’ at
www.josre.org. This is a compilation of papers that are worth reading and have
been reviewed, but are not typical academic papers with literature reviews and
empirical testing. They provide advice, strategy discussions, and synthesis. We
expedite the process of publication by not copy-editing and typesetting these
papers. Rather, we publish them as edited and formatted by the authors. Note that
not all submitted papers are accepted in this section. We received about three
times as many papers as we accepted in Volume 2, and we expect that over time
we will receive even more submissions.
This journal has now been accepted in Econ Lit, the American Economic
Association’s prestigious electronic bibliography. This will mean that citations of
work published here are more likely than before when we were a relatively
unknown publication.
The CoStar Group continues to fully fund this Journal including editing and
prizes. The University of San Diego Burnham-Moores Center for Real Estate
continues to manage the journal with the dedicated help of Myla Wilson and
editorial assistance by Jeryldine Saville. The American Real Estate Society
(ARES) continues to support the journal as one of its official publications, and
we have three very capable associate editors who work with me to review papers
and determine which papers are accepted. They are: Nico B. Rottke (Europe),
European Business School, email: [email protected]; Robert Simons
(North America), Cleveland State University, email: [email protected]; and
Kwame Addae-Dapaah (Asia), National University of Singapore, email:
[email protected].
Submissions should still be sent to [email protected] or to nmiller@
sandiego.edu with a copy to [email protected].
Acknowledgements
We thank the CoStar Group and the support of CEO and President Andrew
Florance for funding this journal in full. We want to make it clear that while
CoStar has provided the funding to us and data to many researchers, they have
always provided complete independence and never asked to see any results prior
to publication. I am also deeply indebted to Myla Lorenzo-Wilson, who has
worked tirelessly on communications with authors, provided content and cover
designs and otherwise managed the entire review process of the journal and to
the University of San Diego’s Burnham-Moores Center for Real Estate for their
support of this journal.
This is what we hope will be the second of many issues until such time that
sustainable real estate becomes so mainstream that a separate journal is no longer
needed.
We also want to thank our Editorial Board, especially the Associate Editors who
deserve the red pen award for reviewing so many papers. Some members of the
Advisory Board participated in a discussion in the Industry Perspectives section,
and they continue to provide vital links by cheerleading submissions from those
involved in sustainable real estate research.
CoStar
On behalf of the CoStar Group, I am very pleased to welcome the publication of
the second issue of the Journal of Sustainable Real Estate (JOSRE), and to
congratulate the authors whose original research is presented in this second issue.
CoStar Group continues to be an active supporter of academic research involving
the built environment. As part of our ongoing efforts to increase awareness of
energy efficiency and sustainability issues in real estate, CoStar has joined with
the ARES to sponsor JOSRE with the goal of provoking thought and encouraging
discussion by publishing a collection of research papers addressing sustainable
real estate issues. CoStar has also undertaken a series of quarterly webinars with
the U.S. Green Building Council and may soon start teaming up with the
Environmental Protection Agency to provide information on trends and best
practices.
Of all the core categories of energy consumption in the United States, the built
sector is the least efficient and has the largest potential for cost-effective
improvement. Addressing the impact that sustainability practices can have on this
major business sector is critical.
And yet, businesses and public sector organizations face a daunting task in
confronting the fundamental challenges presented by climate change, population
growth, and resource constraints. If successful, their decisions may lead to the
development of market-leading innovations and technologies and drive changes in
business practices and consumer behavior needed to integrate sustainability on a
large scale and achieve the economic rewards and long-term viability that
sustainable principles offer. However, if we are unsuccessful in meeting those
challenges, we collectively face increased costs, diminished opportunities, and a
very real risk to our future.