The economic feasibility of sustainable logistic real estate
Faculty of Applied Economics
S.l. , 2009
Conference proceedings ERES Conference 2009, Stockholm, Sweden
University of Antwerp
Climate change, globalization and the increasing energy prices have become important subjects that determine the socio©\economic conditions of our globalized world. To cope with those changes, we need to think about investing in a more sustainable and green economy. Priority should be given to the transport and real estate sector, as they have an increasing share in the emission of greenhouse gasses, unlike some other sectors. In this paper we will focus on the impact of sustainable measures in logistic real estate. Nowadays, investors hesitate to invest in sustainable measures for real estate because they still relate green investments with higher costs. Next to the investors, all the other stakeholders ¨C users, builders and developers ©\ are also driven by demand, supply and cost uncertainty of green measures. This paper will clearly define the differences between a traditional and a green logistic warehouse in all its different levels and aspects. Furthermore it will reveal why financial valuation of green warehouses is not that easy as expected bearing in mind the financial valuation methods currently available in literature and the different qualitative benefits related to sustainable investments. Third the paper will discuss the importance of a certificate for the evolution towards green logistic warehouses and how this can facilitate a possible financial valuation.