– PunchList provides real estate estimates and repairs for pre-list, contract-close and post-close. –

CHICAGO – March 26, 2021 – Leading Real Estate Companies of the World^® has expanded its Solutions Group program with the addition of PunchList, a tech-enabled real estate repair company for pre-list, contract-close and post-close.

PunchList provides a fast, accurate and dynamic price estimate using the data from a home inspection. They can turn estimates around in 24 hours or less, and their team of licensed and insured contractors can execute all repairs quickly.

“PunchList helps real estate agents and their clients take care of repairs at any point in the closing process, with the added benefits of being able to work with one source, pay at closing, and have the protection of a one-year warranty. Their service-oriented approach makes them a great fit for our network,” said LeadingRE Director of Sales and Business Development Jeff Kennedy.

“We love providing stress-free closing repairs for our agents and their clients. We are thrilled to bring the PunchList solution to all of the LeadingRE members to help them compete in the global marketplace,” said PunchList Founder and CEO Rich Estes.

Learn more about PunchList at partner.punchlistusa.com/leadingre. Learn more about Leading Real Estate Companies of the World^® at LeadingRE.com.

###

 

About PunchList

Founded in 2017, PunchList is a growing tech-enabled real estate repair company located in Charleston, SC. PunchList works with agents and brokers all across the United States to provide stress-free closing repairs to agents and their clients.

Read More

 

CHICAGO – March 2, 2021 – Leading Real Estate Companies of the World^® celebrated top-performing member firms at its Annual Network Referral Performance Awards ceremony, held virtually March 1. Winners were recognized in a variety of areas relating to referral excellence.

The awards were presented by LeadingRE Chairman of the Board Diane M. Ramirez (Brown Harris Stevens Residential Sales, New York, NY), LeadingRE President/CEO Paul Boomsma, LeadingRE Executive Vice President Kate Reisinger and members of LeadingRE’s Member Services team in a festive ceremony that featured music, acceptance speeches and insights from winning members on what they did differently in 2020 to build on their success.

According to Boomsma, “In a typical year, all of our awards are announced and celebrated during our Gala in Las Vegas, but, as we all know, this year was anything but typical. Considering the amazing success of our members, despite the extraordinary circumstances, we wanted to honor the many ways they adapted, stepped-up and came together to serve the evolving needs of home buyers and sellers. It was a privilege to recognize each of our winners and nominees for their exceptional work.”

Among the awards presented was the prestigious Crown of Excellence, awarded in seven company size categories based on superior referral performance: Allen Tate Company (Charlotte, NC); Realty Austin (Austin, TX); Beverly-Hanks & Associates (Asheville, NC); Dickens Mitchener (Charlotte, NC); Platinum Group, REALTORS (Colorado Springs, CO); Hamner Real Estate, LLC (Tuscaloosa, AL); CamTaylor Realtors (Columbus, OH); and Vista Encantada REALTORS, LLC (Albuquerque, NM).

Earning the Million Dollar Award for Highest Valued Outgoing Closings was Houlihan Lawrence Real Estate (Rye Brook, NY). The Global Alliance Club Award for Most Outgoing International Referral Closings was presented to Ebby Halliday Realtors (Plano, TX); Macdonald Realty Ltd. (Vancouver, Canada); and Reality Realty (San Juan, Puerto Rico).

Recognized for having the Top 5 Most Closed Outgoing Closings, were: WEICHERT, REALTORS^® (Morris Plains, NJ); Long & Foster Real Estate Inc. (Chantilly, VA); Howard Hanna Company (Pittsburgh, PA); Houlihan Lawrence Real Estate (Rye Brook, NY); and Allen Tate Company (Charlotte, NC).

The Top 5 Global Referral Award, recognizing members from outside the U.S. that sent the most outgoing referrals in 2020, went to: CIR REALTY (Calgary, Canada); Macdonald Realty Ltd. (Vancouver, Canada); Dexter Realty (Vancouver, Canada); TrilliumWest Real Estate Brokerage (Guelph, Canada); DFH Real Estate (Victoria, Canada); and International Property Agent (Tokyo, Japan).

The firms recognized with the Pinnacle Award for having the most outgoing revenue-generating referrals were: Long & Foster Real Estate Inc. (Chantilly, VA); Lyon Real Estate (Sacramento, CA); Beverly-Hanks & Associates (Asheville, NC); Dickens Mitchener (Charlotte, NC); WK Real Estate (Boulder, CO); Marx-Bensdorf Realtors (Memphis, TN); and Premier Living Properties (Saint Charles, IL).

Winning Awards of Excellence for outstanding performance in various referral categories were: Allen Tate Company (Charlotte, NC); Beverly-Hanks & Associates (Asheville, NC); CamTaylor Realtors (Columbus, OH); CIR REALTY (Calgary, Canada); Craven & Company Realtors (Concord, NC); Dickens Mitchener (Charlotte, NC); Hamner Real Estate, LLC (Tuscaloosa, AL); Houlihan Lawrence Real Estate (Rye Brook, NY); Marx-Bensdorf Realtors (Memphis, TN); Meybohm Real Estate (Augusta, GA); Peabody & Smith Realty, Inc. (Franconia, NH); Platinum Group, REALTORS (Colorado Springs, CO); Randall Realtors (Sandwich, MA); Real Estate One, Inc. (Southfield, MI); Realty Austin (Austin, TX); The Janet Jones Company REALTORS (Little Rock, AR); Tracy Arnett Realty Ltd. Brokerage (Ottawa, Canada); Turpin Real Estate, Inc. (Far Hills, NJ); Vista Encantada REALTORS, LLC (Albuquerque, NM); and WK Real Estate (Boulder, CO).

Dudum Real Estate Group (Walnut Creek, CA) earned the Fast Tracker Award based on exemplary engagement and significant outgoing referral performance in their first full year of membership in LeadingRE. Winning the marketing award in the Referral Promotion category were were @properties (Chicago, IL); Cottingham Chalk (Charlotte, NC); and WK Real Estate (Boulder, CO). Dickens Mitchener (Charlotte, NC) received the Direct Connection Leads Award – Platinum from RELO Direct^® for excellence in providing qualified leads and successfully collaborating with LeadingRE’s full-service relocation management company.

LeadingRE is currently planning its Conference Week for May 23 – 27 in Las Vegas and is working to reimagine a safe, socially distant, but energizing and empowering event for its members, while continuing to monitor all health and safety guidelines.

To learn more about Leading Real Estate Companies of the World^® , visit LeadingRE.com.

###

Read More

 

– Curbio is an all-in-one pre-listing home improvement solution built for agents. –

 

CHICAGO – February 22, 2021 – Leading Real Estate Companies of the World^®, a global network of more than 550 leading independent real estate firms, has named Curbio to its Solutions Group, a collection of preferred  business resources.

Curbio is the leading national home improvement company for Realtors®. Curbio partners with agents and their clients to make repairs and updates to get homes ready for market fast, with no payment due until the home is sold. As the licensed and insured general contractor, Curbio offers a one-stop solution, from permitting, to project administration, to punch-list for projects of all sizes.  As a national technology-enabled company, Curbio has modernized and streamlined the old fashioned home improvement experience to take the workload and uncertainties out of residential real estate projects and keep them on track for closing, so Realtors can spend their time selling more homes.

“Curbio offers a comprehensive pre-listing home improvement solution, built with agents in mind, allowing them to improve service for clients, expedite sales and, ultimately, do more business,” said LeadingRE Director of Sales and Business Development Jeff Kennedy. “Their pay-at-closing model makes it a tremendous value and helps generate top dollar.”

“We couldn’t be more excited to partner with LeadingRE as we modernize home improvement for their network’s buyers and sellers and help make every agent more successful. LeadingRE’s mantra is “Making the Best Brokerages Better”. Curbio is confident we will contribute to that goal by offering LeadingRE brokerages the only turn-key home improvement solution built specifically to deliver the speed, resources, online customer experience and pay-at-closing terms that keep every real estate transaction moving forward,” said Curbio Chairman, President and CEO Rick Rudman.

Learn more about Curbio at curbio.com. Learn more about Leading Real Estate Companies of the World^® at LeadingRE.com.

###

 

About Curbio

Curbio is the leading national home improvement company for Realtors®. We partner with agents and their selling clients to get homes ready for market fast, with no payment due until the home is sold. As the licensed and insured general contractor, we offer a one-stop solution, from permitting, to project administration, to punch-list. Our national scaled operations, proprietary technology, and five-star team of project managers and contractors enable us to streamline and improve all aspects of the home improvement experience. From simple repairs to large renovations, count on Curbio to get the job done and make every listing a success.

 

About Leading Real Estate Companies of the World^®
Leading Real Estate Companies of the World^® (www.LeadingRE.com) is a selective global community of the highest quality independent residential real estate companies, with over 550 companies and 135,000 sales associates in over 70 countries. Network members generate over 1.1 million transactions annually. LeadingRE exists to make its members better by connecting them to opportunities and people around the globe, supporting them with an international referral network, professional development programs, unique events and connections to people and opportunities worldwide.

Read More

 

This article by LeadingRE Executive Vice President, Global Operations was originally published on PrimeResi (subscription required).   

 

For most people TikTok is a social network where teenagers perform dancing challenges and upload videos, often involving their pets. If you are over 40 (like me) chances are you’re not on TikTok and perhaps only became aware of the app last summer when Donald Trump threatened to ban it in the US fearing data sharing with China. However, we are now seeing real estate agents adopting the platform to advertise multimillion-pound property listings globally.

The relatively new social media platform allows users to create and share short videos. To say it’s become popular in the last couple of years would be a massive understatement. It’s now the world’s most in-demand social media channel with 800 million users worldwide and an impressive 1 billion views per day.

TikTok is still a playground for Generation Z: users aged between 16 and 24 account for over 41 per cent of its users. However, on the back of its incredible growth and impressive numbers, some agents from around the globe have started using the app to promote their listings. In fact, TikTok stats show that property searches have become popular on the app with the hashtag #realestate gaining over 2.9 billion views, #realtor 640 million views and #property 306 million views. If the younger generation regularly use this platform, then it makes sense for agents to also be present in the space, particularly as this age group grow older and begin buying and renting real estate.

Incredibly, there are also now “real estate agent guides to using TikTok” popping up online. Most of these early adopters are in the US, but the UK and other key markets are catching up. TikTok is now being used by housebuilders too. The global lockdown restrictions over the past year have forced companies to seek creative and innovative ways to market their properties, and some savvy developers saw the opportunity to experiment with the platform in marketing new homes.

TikTok’s technology is user-friendly and fairly straightforward, so if someone views a property video, they can share it easily, helping generate exposure for the listing. However, a quick look on the app shows it is at its very early stages of development as a marketing strategy. If you were to browse through the hashtag #realestate you will find that many of those videos are only vaguely attached to homes and property and some are completely unrelated. This is mainly due to the way that TikTok’s algorithm works. The landing page when you open the app is called For You. It’s a feed based on videos you have watched or interacted with. It does not feature people you know or follow like Instagram, for example.

So as things currently stand, it is quite difficult for a hopeful buyer to find their dream property on TikTok. The content on the app can become viral for all sorts of reasons, but it can give way to another meme or trend in the blink of an eye, meaning your listing can quickly become yesterday’s news. For this reason, I don’t see this becoming a core marketing strategy for brokers in the immediate future. However, it can certainly be used as a supporting part of the marketing mix, to generate more exposure – and even have a chance of going viral. Recent research shows Millennials and Generation Z will make up 45 percent of the luxury market by 2025, so now could be the time to jump onboard the TikTok bandwagon, even if there are a few issues to navigate. It will be interesting to see how property companies make use of the app’s undoubted potential in the years ahead.

 

Read More

CHICAGO – 2/08/21 – Parks Realty has been awarded the prestigious RELO^® Quality Certification from Leading Real Estate Companies of the World^®(LeadingRE), a global network of 550 market-leading real estate firms. The only program of its kind, the RELO^®Quality Certification (RQC) quantifies and qualifies relocation service excellence. Modeled after the Malcolm Baldrige National Quality Award, it was created by LeadingRE to provide measurable standards for the pursuit of relocation excellence.

Parks Realty, a leader in the Nashville and Middle Tennessee market, earned the certification following a rigorous application process, overseen by a committee of leading industry professionals. All aspects of the company’s relocation operations were evaluated, using specific criteria to evaluate performance, staffing, training and education, quality and scope of services for relocation clients, program marketing, customer satisfaction, technology resources, office facilities, and more.

“We are delighted to award the RELO^® Quality Certification to Parks Realty in recognition of their success in providing superior relocation services to individual families, as well as corporate clients. They join a prestigious group of companies that have earned this distinction, signifying proven leadership in the relocation industry,” said LeadingRE Executive Vice President, Member Services Kate Reisinger, CRP.

“Parks Realty strives to exceed expectations from start to finish when assisting clients and customers moving to and from Middle Tennessee. The RQC is the ultimate testament to our dedication to serving our clients and customers, and we are honored to receive this designation,” said Michele Barnes, CRP, Parks Realty’s Director of Relocation.

Parks has been in business for over 45 years and is consistently recognized for excellence. The company is locally owned and is highly committed to and invested in the communities it serves. Parks advocates for clients and guides them through real estate transactions with extraordinary service, uncompromising ethics, and exceptional knowledge. This environment of performance mixed with care for agents and staff translates to the best possible real estate experience for home buyers and sellers.

To see a full list of RQC companies, visit LeadingRE.com/rqc.

# # #

 

About Leading Real Estate Companies of the World^®
Leading Real Estate Companies of the World^® (www.LeadingRE.com) is a selective global community of the highest quality independent residential real estate companies, with over 550 companies and 135,000 sales associates in over 70 countries. Network members generate over 1.1 million transactions annually. LeadingRE exists to make its members better by connecting them to opportunities and people around the globe, supporting them with an international referral network, professional development programs, unique events and connections to people and opportunities worldwide.

Read More

– Global network eyes expansion after adding 34 new firms in 2020.  –

 

CHICAGO, Ill., USA – January 19, 2021 – Chicago-based Leading Real Estate Companies of the World^® (LeadingRE) is primed for continued global expansion in 2021, following significant growth around the world last year.

“We are delighted that our model continues to resonate with so many market-leading firms,” said Paul Boomsma, president and CEO of LeadingRE. “We are confident that our unique value proposition—focused on independence, strength and success—will help us achieve even more strategic growth this year.”

In 2020, LeadingRE welcomed a total of 11 new U.S.-based members and 23 new global members, extending LeadingRE’s presence in 70 countries, with a total of 550 firms and 135,000 sales associates.

New members in Europe include: Dhalia Real Estate Services, Mriehel, Malta; Dianium Residence, Alicante, Spain; Fuchs Immobilien AG, Nafels, Switzerland; GIOTTO Riviera Real Estate, Menton, France; Jones Lang LaSalle (JLL) Residencial Portugal, Lisbon, Portugal; Jones Lang LaSalle Residential London, Lindon, United Kingdom; Luxury 778, Valais, Switzerland; RED, Palma de Mallorca, Spain; Riviera Keys, Cannes, France; and VALLAT, Annecy, France.

In the Asia-Pacific region, new members include: Seven Stones Indonesia, Bali, Indonesia; IQI Caliver Real Estate Firm, Taguig, Malaysia; and Tommy’s Real Estate, Wellington, New Zealand.

In the Latin America / Caribbean Region, LeadingRE welcomed: Alamos Realty, Sonora, Mexico; Becerra Group, Lima, Perú; Clubhouse Real Estate, San Juan, Puerto Rico; Cranfields Property Bermuda, Warwick, Bermuda; Dominican Properties, Santo Domingo, Dominican Republic; Elite Inmobiliaria, Bogotá, Colombia; and One Caribbean Estates, Saint James Parrish, Barbados.

New LeadingRE members in Canada include: Blue Panda Realty, Ottawa, Ontario, Canada; and Rimrock Real Estate, Edmonton, Alberta, Canada.

In the United States, LeadingRE welcomed Bowen & Associates Realty, Sumter, S.C.;  Howard Hanna | Rand Realty, Nanuet, N.Y.; Latter & Blum, Inc. Realtors, New Orleans, La.; Nan and Co Properties, Houston, Texas; Nest Realty Group, Charlottesville, Va., Parkway Real Estate, Chico, Calif.; Red Oak Realty, Piedmont, Calif.; Resources Real Estate, Rumsom, N.J.; Tyler Redhead & McAlister Real Estate, Greensboro, N.C.; W Real Estate, Santa Rosa, Calif.; and Watson Realty, Bakersfield, Calif.

To see LeadingRE’s full membership roster, visit LeadingRE.com/ourcompanies.

 

###

 

About Leading Real Estate Companies of the World®

Leading Real Estate Companies of the World^® (www.LeadingRE.com) is a selective global community of the highest quality independent residential real estate companies, with over 550 companies and 135,000 sales associates in 70 countries. Network members generate over 1.1 million transactions annually. LeadingRE exists to make its members better by connecting them to opportunities and people around the globe, supporting them with an international referral network, professional development programs, unique events and connections to people and opportunities worldwide.

Read More

 

Leading Real Estate Companies of the World^® Leads Industry with 30 Members Named to 2021 Swanepoel Power 200

– Annual ranking lists the most powerful leaders in residential real estate. –

 

CHICAGO – January 14, 2021 – Leading Real Estate Companies of the World^® has more representation on the 2021 Swanepoel Power 200 than any other organization, with 30 member brokers named to the prestigious ranking, reflecting the continued strength of the independent brokerage model and the quality of LeadingRE affiliates. LeadingRE President/CEO Paul Bommsma is also ranked.

The SP 200, now in its eighth year, ranks the leaders, executives and entrepreneurs from all sectors of the residential real estate brokerage industry based on three months of intensive research, debate and over 400 hours of analysis. It is issued by T3 Sixty, a leading management consulting firm in the residential real estate brokerage industry.

LeadingRE brokers on the list include: Howard “Hoddy” Hanna & Helen Hanna Casey, Hanna Holdings & Howard Hanna Real Estate Services; OB Jacobi, Jill & Geoff Wood, Windermere Real Estate; J. Lennox Scott, John L. Scott Real Estate; Jim M. Weichert & James Weichert Jr., Weichert Realtors; Chris Raveis & Ryan Raveis, William Raveis Real Estate; Michael Golden & Thaddeus “Thad” Wong, @properties; Jeffrey “Jeff”  Detwiler, Long & Foster Companies; Howard “Hoby” Hanna, Howard Hanna Real Estate Services; Harold Crye, Crye-Leike Realtors; Bess Freedman, Brown Harris Stevens; Dan Elsea & Stuart Elsea, Real Estate One; Stephen  Baird, Baird & Warner; Greg Mason, Edina Realty Home Services; Lacey Merrick Conway, Latter & Blum Realtors; Joe Horning, Shorewest Family of Companies; Cameron Merage, First Team Real Estate; Michael and Drayton Saunders, Michael Saunders & Co.; Robin Sheakley, Sibcy Cline; Pat Riley, Allen Tate Companies; Mike Pappas, The Keyes Company; Gary Scott, Long & Foster Companies; Diane Ramirez, Brown Harris Stevens; Chris Kelly, Ebby Halliday Companies; Pat Shea, Lyon Real Estate; Jonathan Boatwright & Yvette Boatwright, Realty Austin; Jeff Hyland, Hilton & Hyland; Rosey Koberlein, Long Realty Company; Steve Brown, Crye-Leike Realtors; Jennifer Warden, Baird & Warner; and Michael Scarafile, Carolina One Real Estate.

See the full ranking at www.realestatealmanac.com/executives/leaders.

 

# # #

 

About Leading Real Estate Companies of the World^®
Leading Real Estate Companies of the World^® (www.LeadingRE.com) is a selective global community of the highest quality independent residential real estate companies, with over 550 companies and 135,000 sales associates in over 70 countries. Network members generate over 1.1 million transactions annually. LeadingRE exists to make its members better by connecting them to opportunities and people around the globe, supporting them with an international referral network, professional development programs, unique events and connections to people and opportunities worldwide.

Read More

 

CHICAGO – (October 21, 2020) – Leading Real Estate Companies of the World^® (LeadingRE) has expanded its staff with the addition of Liv Baggen as Director, Global Luxury Market Expansion. Ms. Baggen, who is based in Frankfurt, Germany, will be responsible for growing the global network’s membership in high-end markets outside of the US and increasing global participation in LeadingRE’s luxury marketing program, Luxury Portfolio International^®.

Ms. Baggen is an experienced international business development manager with a history of success in the luxury real estate business. She also has expertise working in fine art, hospitality, and luxury goods. Her former companies include Palazzo Versace in Dubai, JLL in Berlin and Frankfurt, and a prestigious art collector in Beirut.

“We are thrilled to welcome Liv to our team. A long-time friend of our network, she brings a specialized background in the affluent market and a strong professional network in numerous sectors across Europe and the Middle East,” Chris Dietz, Executive Vice President of Global Operations at LeadingRE, said. “Her unique perspective will be valuable as we continue to strengthen our global value proposition and create program offerings that support our members worldwide.”

Ms. Baggen will work closely with the team of Luxury Portfolio International^®, which recently appointed a new President, Mickey Alam Khan.

A Dutch citizen, Ms. Baggen speaks Dutch, English, German and Italian. Her educational background includes earning a double degree from the University of Amsterdam: Master of Laws (LL.M.) and a Master of Arts (MA.). She can be reached at lbaggen@LeadingRE.com.

###

Read More

Globally-acclaimed luxury brand expert will remain based in New York City, where he will establish a Luxury Portfolio International office

CHICAGO – (October 7, 2020) – Luxury Portfolio International^® (LPI), the luxury marketing division of Leading Real Estate Companies of the World^®, the largest global network of premier locally branded residential real estate brokerage firms, today named Mickey Alam Khan President.

Alam Khan, one of the world’s top experts in the luxury arena, will be engaged with Luxury Portfolio International’s Member companies, furthering the organization’s global growth by expanding an already robust suite of offerings. Additionally, LPI will complement its expanded global strategy with additional staffing and resources.

He will also leverage his role as a luxury thought leader, authoring position papers and opinions as to how the world of global luxury real estate and luxury brands intersect.

Currently based in New York City, Alam Khan will establish a presence there for Luxury Portfolio International.

He was most recently founder and editor-in-chief of Luxury Daily, the world’s leading luxury business publication. As part of Alam Khan’s agreement with LPI, the organization has purchased Luxury Daily, where he will remain editor-in-chief, as well as assuming the title of Publisher for other LPI print and digital publications, including the highly acclaimed Luxury Portfolio Magazine.

“Few people understand the mindset of the global luxury consumer the way Mickey does,” said Paul Boomsma, President & CEO, Leading Real Estate Companies of the World®.  “We are very excited about connecting luxury residential real estate with a broad range of high-end brands, including cars, travel, experiential opportunities and more.”

Alam Khan has a long-standing reputation for pioneering digital initiatives. He founded and edited Mobile Marketer as well as Mobile Commerce Daily, turning both outlets into leading publications in their space before he sold them in 2017.  Prior to that, he was editor of eMarketer and DM News.

“This is an absolute dream opportunity for me,” added Alam Khan. “I grew up in a real estate family, so I have a deep-rooted passion for the industry. I’m very much looking forward to supporting LPI’s growth, while furthering connections between luxury residential real estate and luxury brands as a whole.”

“Having Mickey as President of LPI creates tremendous value for LPI members,” notes Diane M. Ramirez, Executive Chairman and Senior Advisor of Brown Harris Stevens Residential Sales, LLC, one of the northeast’s most respected residential real estate firms, and Chairman of the Board of Leading Real Estate Companies of the World®. “Our value proposition to members has just been expanded through Mickey’s expertise.”

# # #

ABOUT LUXURY PORTFOLIO INTERNATIONAL^® (LPI)
LPI (luxuryportfolio.com) is the luxury marketing division of Leading Real Estate Companies of the World^®, the largest global network of premier locally branded firms dominated by many of the world’s most powerful, independent luxury brands. LPI attracts a global audience of visitors from over 200 countries/territories every month and markets more than 50,000 luxury homes annually. Well Connected.™

Read More

Originally published on PrimeResi (subscription required).

 

Developers, policymakers and investors are coming round to the idea that green development makes economic sense, says LeadingRE’s Jojo Romarx Salas.

“The floor area of the global buildings sector is expected to double by 2060,” according to the report “Green Buildings: A Finance and Policy Blueprint” by the International Finance Corporation, a sister organization of the World Bank and the largest global development institution focused on the private sector.

The projected growth may be a boon for the real estate and construction industry in general, but it could mean huge environmental costs. The IFC estimates that the buildings sector presently consumes more than half of all electricity, for heating, cooling and lighting and accounts for 28% of energy-related greenhouse-gas emissions. It will require an estimated 50% more energy by 2050 than today.

Climate change has prompted environmental considerations’ rise to the heart of all real estate decision-making, however, going green is also more profitable in the long run.

The IFC report states “resource-inefficient buildings run the risk of losing economic value or becoming stranded assets due to increasingly stringent regulations, pressure from financial regulators to manage and disclose climate risks, changing consumer preferences, and shareholder demands. Non-compliant buildings could become subject to legal action and fines, making them more expensive to operate and insure, and harder to lease or sell.”

There is a common notion that incorporating “green” or sustainable features in a development would mean additional costs, restricting profitability. This is not necessarily true, and there is a growing consensus that green development is not only more sustainable but more profitable as well. The IFC report presents that building green may result to savings of between 0.5% to 12% in construction costs. More importantly, green buildings can reduce up to 37% of recurring operational costs. Green buildings may achieve higher sale premiums of up to 31% with faster sale times. They can also have up to 23% percent greater occupancy rates, and higher rental income of up to 8%.

The initial impact of the Covid-19 pandemic has veered consumer demand towards health and wellness as well. With lockdown and quarantine all over the world, we reached out to our members, who reported a shift in tastes and preferences. Peter Thompson of Barfoot and Thompson, the LeadingRE member in Auckland, New Zealand said there is a growing concern for health and safety, especially when they transact real estate deals. Erik Noordam of VOC International in the Netherlands highlighted that there is an increased interest in wellness within buildings.

A LeadingRE member in California, Michael Hickman of Seven Gables Real Estate, said that due to the pandemic, more people are asking about recreational rooms, weight rooms, and larger spaces. LeadingRE noted a 500% increase in enquiries for tennis courts in Westchester County, New York. In Georgia, MaryJo Prater of Signature Properties Group noted that “lots of people are looking for waterfront homes.”

There is a consensus that “green and wellness” will be the trend in the coming years in developed markets. However, the IFC paper highlights the need for more “green” development in emerging markets and declares that “the green buildings sector represents a US $24.7 trillion investment opportunity by 2030 across all emerging market cities with a population of more than half a million people.”

Real estate investors and financiers can accelerate the market for green buildings. Typically, commercial banks are a key source of financing and fill the space on construction finance, mortgages, home improvement loans, and green financial products for resource-efficient buildings. Banks can expand their client base and product offerings, build higher-value and lower-risk portfolios, and access new sources of finance through green bonds, green securitizations, and green credit facilities, potentially reducing their cost of capital.

Governments, in turn, should create enabling environments to galvanize market growth by incentivizing financiers to channel capital to the sector, creating a pipeline of green building assets. Governments can also contribute to investor appetite by requiring all public buildings to be green. This will generate technical capacity and skills among designers, engineers, and workers, who then can build privately financed green buildings. Governments may also use fiscal incentives in the form of tax breaks, grants, subsidies, loans, and rebates.

The private sector’s voluntary commitment to build green is even more crucial. Due to the growing evidence of cost savings, as well as tax incentives, private real estate developers and owners have created the momentum to build green. Increased public awareness and collaboration with local and international rating systems can further fuel the growth of green building portfolio. With the stamp of verification from the likes of BREEAM, DNGB, EDGE, Green Star, and LEED, green developments will be supported with public acceptance as well as the financial benefits from savings and incentives.

###

Read More