REALpac, IPD Launch Canada Green Property Index

By Editorial 26 November, 2013

REALpac, a Canadian real estate investment association, and IPD, a real estate analytical service provider, have jointly launched an index to track the unleveraged total return of direct real estate properties with BOMA BESt and/or LEED certification.

The inaugural consultative release of the REALpac/IPD Canada Quarterly Green Property Index was announced on November 21, 2013.

The index currently tracks more than 600 institutional grade properties across Canada with a total value of CAD59.4bn (USD56.5bn).

It shows that Canadian green commercial real estate performed well in the year ending September 30, 2013, returning 13.3 percent, higher than the 12.7 percent recorded by the REALpac/IPD Canada Quarterly Property Index in the same period. The stronger performance of green property resulted from a higher income return and capital appreciation (5.7 percent and 7.2 percent respectively) versus property tracked by REALpac/IPD Canada Quarterly Property Index (5.6 percent and 6.8 percent respectively). Green properties had lower vacancy rates and higher net operating income per square foot in the period.

Simon Fairchild, the Executive Director of IPD and head of the company's North America business, said: "Green real estate has become increasingly important to both asset owners and managers in making investment decisions. IPD is pleased to partner with REALpac in the development and introduction of the new index. Since it is still new and in the consultative stage, we encourage the industry to provide us with feedback regarding defining green properties, and how green factors affect investment returns."

Tags: Investment | Business | Real-estate Investment | Real-estate | Canada | Expats | North America |


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