A new ASTM International standard aims to address the growing need for assessing building energy performance in the context of commercial real estate transactions.
ASTM International member Anthony J. Buonicore notes that potential buyers are increasingly purchasing properties in states and municipalities with building energy performance disclosure requirements. As such, disclosures related to building energy efficiency will become a routine part of property acquisition due diligence when a property condition assessment (PCA) is conducted.
“If the building is underperforming against its peers, this can reduce its competitive position in the marketplace and negatively impact its valuation,” says Buonicore, chairman of Sustainable Real Estate Solutions Inc. “As such, it becomes likely that a PCA consultant will be asked to include an assessment of building energy performance.”
The standard (soon to be published as E3224) was developed by ASTM International’s committee on environmental assessment, risk management, and corrective action (E50). Specifically, the standard provides a methodology to identify if a building is underperforming compared to similar buildings, and if so, identify measures that might improve performance and the probable cost of such measures.
The new standard will be useful to prospective purchasers of commercial property, PCA and due-diligence consulting firms, commercial lenders, and commercial real estate investment firms.
This article first appeared on the ASTM International website and is published here with permission. Please visit ASTM for more information.