First "green premium", now "brown discounts"
Buildings that are not sustainable could soon face a reduction in their asset value, and eventual selling price.
Guy Grainger of Jones Lang LaSalle says "the pressure is coming to Europe and the UK first. In one very early case, a building in the UK was hit with a brown discount of about a third of its price. It was valued last year at a certain level, and then when you took into account the costs of transitioning it to net-zero carbon, then the price was reduced by 30%"
The green premium in contract is reportedly a "general 5% to 12% increase in value for a net-zero building"
Buildings not retrofit for net zero face a looming ‘brown discount’ as real estate goes green
The “brown discount” will be significantly more than the added value for investing, Guy Grainger says
