Real estate investors are still “optimistic about the Sun Belt,” driven by a large influx of people moving there for a better quality of life, lower cost of living, and lower taxes, especially in Florida and in Texas, Mr. Swartz said.

So far they have been rewarded, he said. The steepest house price increases have occurred in the Sun Belt due to increased demand.

Even so, property managers are beginning to recognize that real estate is a major energy consumer and a significant contributor to greenhouse gas emissions, both from maintenance and project construction, he said. -he declares. Concrete and steel are “carbon-intensive,” Swartz said. Even so, “we’re building more buildings, not reducing that,” he said.

However, recent studies show that more durable, less carbon-intensive properties provide better returns, Swartz said.

A 2020 study from the Massachusetts Institute of Technology found that properties with healthy building certifications, for example, garnered 4% to 7% higher rents per square foot than buildings without certification.

According to the Harvard TH Chan School of Public Health, a healthy building promotes the physical, psychological and social health of its occupants through elements such as good ventilation and air quality, comfortable temperature, low levels noise and natural light.

According to a recent report by the United Nations Environment Programme’s Finance Initiative, 87% of property managers surveyed reported an increase in demand for healthy buildings over the past 12-24 months, and 92% expect demand increases over the next three years. .

Green buildings also generate higher rents and capital values, while costing less in monthly operating and maintenance costs, according to a November report from real estate money and asset manager CBRE Group Inc. .

Rents for LEED-certified US offices are 5.6% higher than for non-certified office buildings, according to CBRE analysis. LEED is a rating system of the US Green Building Council.

Currently, rental premiums on green buildings are “only noticeable in the office sector,” CBRE noted. Green buildings also tend to be newer, making premium analysis more difficult, CBRE said in the report.

Property managers are starting to notice the growing evidence of a “green premium,” with eco-friendly processes beginning to be incorporated into due diligence and financial contract terms, Swartz said.