Sustainability and Income-Producing Property Valuation : North American Status and Recommended Procedures

The valuation of property with “sustainability” aspects is not a new property type nor does it call for a deviation from the traditional valuation methods for the appraisal of income-producing properties. However, there can be numerous and significant differences between sustainable and traditional properties that must be considered, researched, and addressed by appraisers. This paper provides the first systematic procedure for evaluating sustainable property aspects with practical guidance and advice for the integration of this procedure into the valuation process for appraisers, developers, building owners, real estate investors, lawyers, and other consumers of appraisal services. The proposed procedure is consistent with the “valuation process” promulgated by the Appraisal Institute while being consistent with the Uniform Standards of Professional Appraisal Practice, and the methodological and conceptual valuation literature