New ULI Real Estate and Investment Report Indicates Encouraging Signs for Sustainable Development in Market Recovery
10/20/2009
Akerman Senterfitt today announced that it has partnered with the Urban Land Institute (ULI) to produce a first-ever climate change, land use and energy report, exploring the role of energy and climate change in real estate investment decisions. Findings from the report show that the ongoing downturn in the commercial real estate industry has temporarily diminished the importance of climate change and alternative energy sources as a factor in real estate investment decisions, but interest is likely to pick up when the market rallies.
"The report points to important findings regarding attitudes and initiatives about the continued changes in our natural environment," said Akerman Senterfitt Chairman and Chief Executive Officer Andrew Smulian. "It gives us real insights on how the industry and other opinion leaders are approaching the broader issues surrounding climate change and energy costs, and how such issues will impact business decisions moving forward."
The report, which consisted of a survey of U.S. financial industry leaders conducted by ULI, also found that lenders tend to view energy efficiency -- rather than climate change -- as an important bottom-line issue, and are more apt to reshape their business strategies around reducing energy costs rather than reducing greenhouse gas emissions.
The institute's survey, conducted in May 2009, drew responses from more than 200 top executives of some of the leading financial institutions in the United States, including investment funds, institutional investors, real estate investment trusts and banks, as well as individual investors. The survey findings, all anonymous, are summarized in the report, Investment Niche or Necessity? Climate Change, Land Use and Energy 2009, which shows that most respondents are adopting a "wait-and-see" attitude regarding business strategies related to climate change legislation.
"This report shows a growing acceptance within the real estate industry of green building practices. However, with continuing financing challenges, local governments will need to play a bigger role in supporting future 'green' real estate projects," says Akerman's Green and Sustainable Development practice chair, Cecelia Bonifay, who sees the need for greater public sector incentives to drive green building activity.
"The pause necessitated by the downturn is offering an opportunity for real estate investors and developers to get smarter about what they need to do in an industry in which being green will mean being competitive," noted ULI Chairman Jeremy Newsum.
While interest rates and job growth dominate investment concerns among the survey respondents, the majority said that issues related to climate change will be increasingly important in the years ahead. In the interim, "many are doing what they can on a few fronts, such as conducting energy-efficiency analyses and increasing their internal expertise...What investors do today, and what they anticipate having to do in the future are two separate matters," the report says.
"For now, the global downturn has trumped emerging attempts to realize benefits from green development," the report states. "For investors, thinking green today refers to dollars. Environmental issues play a factor only when they produce an immediate return or mitigate an investment risk."
Some survey highlights:
Akerman has more than 140 lawyers who focus on the needs of real estate and infrastructure clients worldwide. With one of the top 5 legal teams in the U.S. in number of LEED accredited lawyers, Akerman offers one of the leading sustainable development teams in the nation. Akerman offers experience in complex real estate transactions, development and redevelopment projects, economic development incentives, public-private initiatives and litigation matters. Akerman lawyers manage the legal aspects of large land deals and major construction projects, assist developers in meeting green building standards and environmental regulations, conceptualize and obtain development incentives, advise on all aspects of transactional work, including leasing, acquisitions, sales, financings and workouts and restructurings, and represent clients in disputes and litigation.
About Akerman Senterfitt
Akerman is ranked among the Top 100 law firms in the U.S. by The National Law Journal NLJ 250 (2008) in number of lawyers and is the largest firm in Florida. With more than 500 lawyers and government affairs professionals, we serve clients from major business centers in Florida, New York, Washington, D.C., California, Virginia, Colorado, and Texas. For additional information, please visit the firm's Web site at www.akerman.com.
About the Urban Land Institute
The Urban Land Institute (www.uli.org) is a nonprofit education and research institute supported by its members. Its mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. Established in 1936, the Institute has nearly 34,000 members worldwide representing all aspects of land use and development disciplines.
# # #
Pat Tucker
RF|Binder Partners, Inc.
(212) 994-7561
Patrick.Tucker@rfbinder.com
Syvenna Siebert
RF|Binder Partners, Inc.
(212) 994-7605
Syvenna.Siebert@rfbinder.com
"The report points to important findings regarding attitudes and initiatives about the continued changes in our natural environment," said Akerman Senterfitt Chairman and Chief Executive Officer Andrew Smulian. "It gives us real insights on how the industry and other opinion leaders are approaching the broader issues surrounding climate change and energy costs, and how such issues will impact business decisions moving forward."
The report, which consisted of a survey of U.S. financial industry leaders conducted by ULI, also found that lenders tend to view energy efficiency -- rather than climate change -- as an important bottom-line issue, and are more apt to reshape their business strategies around reducing energy costs rather than reducing greenhouse gas emissions.
The institute's survey, conducted in May 2009, drew responses from more than 200 top executives of some of the leading financial institutions in the United States, including investment funds, institutional investors, real estate investment trusts and banks, as well as individual investors. The survey findings, all anonymous, are summarized in the report, Investment Niche or Necessity? Climate Change, Land Use and Energy 2009, which shows that most respondents are adopting a "wait-and-see" attitude regarding business strategies related to climate change legislation.
"This report shows a growing acceptance within the real estate industry of green building practices. However, with continuing financing challenges, local governments will need to play a bigger role in supporting future 'green' real estate projects," says Akerman's Green and Sustainable Development practice chair, Cecelia Bonifay, who sees the need for greater public sector incentives to drive green building activity.
"The pause necessitated by the downturn is offering an opportunity for real estate investors and developers to get smarter about what they need to do in an industry in which being green will mean being competitive," noted ULI Chairman Jeremy Newsum.
While interest rates and job growth dominate investment concerns among the survey respondents, the majority said that issues related to climate change will be increasingly important in the years ahead. In the interim, "many are doing what they can on a few fronts, such as conducting energy-efficiency analyses and increasing their internal expertise...What investors do today, and what they anticipate having to do in the future are two separate matters," the report says.
"For now, the global downturn has trumped emerging attempts to realize benefits from green development," the report states. "For investors, thinking green today refers to dollars. Environmental issues play a factor only when they produce an immediate return or mitigate an investment risk."
Some survey highlights:
- Forty percent of the respondents said the economic downturn had somewhat weakened the business significance of climate change and energy issues; an additional 17 percent said it had significantly weakened the significance of those issues.
- Nearly 80 percent said they have not yet altered their business models or approach to deal structures due to climate change and energy issues.
- Nearly half said climate change and energy issues would be at least somewhat important over both the next year and the next five years. About 15 percent rated climate change and energy issues as important over the next year; over the next five years, about 26 percent.
- Nearly 50 percent said their companies have developed significant expertise in energy or energy-efficiency issues, and one-third have developed professional expertise in sustainable community development.
Akerman has more than 140 lawyers who focus on the needs of real estate and infrastructure clients worldwide. With one of the top 5 legal teams in the U.S. in number of LEED accredited lawyers, Akerman offers one of the leading sustainable development teams in the nation. Akerman offers experience in complex real estate transactions, development and redevelopment projects, economic development incentives, public-private initiatives and litigation matters. Akerman lawyers manage the legal aspects of large land deals and major construction projects, assist developers in meeting green building standards and environmental regulations, conceptualize and obtain development incentives, advise on all aspects of transactional work, including leasing, acquisitions, sales, financings and workouts and restructurings, and represent clients in disputes and litigation.
About Akerman Senterfitt
Akerman is ranked among the Top 100 law firms in the U.S. by The National Law Journal NLJ 250 (2008) in number of lawyers and is the largest firm in Florida. With more than 500 lawyers and government affairs professionals, we serve clients from major business centers in Florida, New York, Washington, D.C., California, Virginia, Colorado, and Texas. For additional information, please visit the firm's Web site at www.akerman.com.
About the Urban Land Institute
The Urban Land Institute (www.uli.org) is a nonprofit education and research institute supported by its members. Its mission is to provide leadership in the responsible use of land and in creating and sustaining thriving communities worldwide. Established in 1936, the Institute has nearly 34,000 members worldwide representing all aspects of land use and development disciplines.
# # #
Pat Tucker
RF|Binder Partners, Inc.
(212) 994-7561
Patrick.Tucker@rfbinder.com
Syvenna Siebert
RF|Binder Partners, Inc.
(212) 994-7605
Syvenna.Siebert@rfbinder.com
