The RICS is to issue new guidance on how valuers should include sustainability in commercial property valuations.
The paper, to be launched next Tuesday, will set out a range of “green features” that valuers should consider.
They include the build-quality and life-cycle of a property, the type of materials used, building services such as air-conditioning, energy efficiency and waste management, as well as the impact of regulation, tax and financial incentives.
The paper encourages valuers to consider comparable rental evidence from similar buildings, and also reflect on the impact of sustainability on rental growth through obsolescence and tenant retention rates.
More formal guidance will be issued in the RICS Red Book when it is reprinted in 2010.
Philip Parnell, chairman of the RICS valuation sustainability working group, said: “The valuer has a clear responsibility to ensure that a valuation reflects all material factors that may influence value. Sustainability is one of the factors that is rapidly gaining importance.
“Markets appear to be moving towards a requirement for greater recognition of sustainability issues, with the evidence suggesting that buildings that fall short of the prevailing market expectations will be increasingly at risk of accelerated obsolescence.”
