The real estate sector must transition towards a low-carbon economy. In current investment decisions, carbon emissions are insufficiently considered and may not contribute to a low-carbon portfolio aligned with the sector's target. Therefore, investors require a change in the current DCF model-based investment decision to direct capital to projects that support this goal.

This paper examines the impact of carbon accounting and pricing on a standard investment model using the Discounted Cash Flow (DCF) model. Three additional cash flows are modelled, representing the costs for Embodied Carbon (ECC), Operational Carbon Cost (OCC), and Maintenance Carbon Cost (MCC). This paper introduces a novel application of carbon pricing in real estate investment, accounting for embodied, operational, and maintenance-related emissions during the use phase, which results in a practical framework and guide for practitioners.

The Carbon Price needs to be sufficiently high to make an impact and contribute to excluding energy-inefficient assets as an investment opportunity. Furthermore, the influence of ECC is minor compared to OCC, making carbon pricing for ECC less relevant in investment decisions. Ultimately, the MCC is a significant factor to consider when making an investment decision.

Carbon pricing can encourage the use of circular and biobased materials, reducing emissions during the construction, renovation, and use phases. Investors should apply a carbon price to affect investment decisions by excluding carbon-intensive assets from investment portfolios. Investors could align their capital with the sector's low-carbon goal by including monetised carbon emissions in an investment decision.

Value drives actions in our modern day economy. In their turn, these actions are the pillars for how well societal transitions are achieved in the long run. In the past decade, we’ve seen governments heavily funding and subsidizing transitions in action to better achieve desperately needed societal targets. Examples are the prevention of climate change, climate transition, and a decrease in resource consumption. However, these significant initiatives are not nearly close to being self-reliant. And with the current retraction of a lot of funds and subsidies on the horizon, the achievement of these transitions has gotten in serious jeopardy. The authors of this abstract posit that these funds and subsidies have not been able to make a significant step forward to successful transitions, mostly because the efforts still focus and rely on the monetary values and motivations and ignore the rest.. It is argued that the introduction of value beyond monetary terms and a way to determine this value is needed. In response, this abstract is intended as the ontological start for developing a summer school, which is part of a recently granted Marie Curie Doctoral Network programme, called QuiVal, where the concept of value is revisited using quantum theory. The summer school under development marks the doctoral network's first educational notes. The aim of the summer school therefore is to stimulate conceptual creativity and critical thinking on the concept of value and offer first clues on how value can be reimagined in practical fields of application surrounding the real estate sector. As preliminary examples to the content of these lecture notes, the authors aim to discuss the implications on value from the position of quantum finance versus classical finance, the potential of these implications to unlock perceptive capability for hard-to-measure value (e.g. social and environmental values) and how it can open up various dimensions of potential value measurements that are important to the multiple transitions in our built environment. To this background summer school, QuiVal aspires to broaden the recognition of non-financial values in industry, government, and research unlocking more sustainable approaches to real estate. For example, by developing models and tools for (non-financial) value measurements we could support decision-making and demonstrate the attractiveness of social and environmental projects better through the research by the doctoral network.

The short-term reuse of vacant real estate has demonstrated to be able to generate multiple benefits (Bishop, 2015; Madanipour, 2017; Oswalt et al., 2012; Senatsverwaltung für Stadtentwicklung Berlin, 2007), and being a quick solution to prevent abandonment risks, providing opportunities to access low-cost space. Research has demonstrated that short-term non-profit projects have the potential to drive innovation and generate social value (Mangialardo & Micelli, 2017; Pinard, 2020; Saleh, 2022). In fact, temporary initiatives can establish transient communities, test new land-use models, and inform real estate transformations (Lepik, 2012). Mostly, creative, artistic, and informal occupations (Andres, 2011; Honeck, 2017; McArdle, 2022; Shaw, 2005; Vivant, 2022) gained attention over the last 25 years, because they have demonstrated capacities for placemaking (Camerin, 2024; Hernandez-Santin et al., 2020; Karachalis, 2021) and urban regeneration (Darchen & Simon, 2022; Martin et al., 2019). For these and other reasons, temporary use projects have been increasingly integrated in urban studies (Chang, 2021) and in urban planning (Lehtovuori & Ruoppila, 2012), despite that the seduction of short-term solutions can hide unfair dynamics (Ferreri, 2015). In this context, Temporary Uses (TU) have been observed critically, considering issues as gentrification risks (Assiter, 2022), benefit distribution (Ferreri, 2020; Mens et al., 2023; Vivant, 2022), negotiations among actors (Zhang, 2018), and outcomes in co-production (Jaspers & Steen, 2019). However, we still don’t have models to measure the economic impact of real estate TU in their urban contexts. Thus, we ask: 1) What are the economic impacts that the social value of a TU produces on urban context? 2) What factors describing urban changes and TU of vacant buildings correlate? And, consequently, 3) how does TU social value contribute to urban dynamics? To address this gap, this study aims at defining and test a methodological framework to measure the economic impacts generated by the social value of temporary uses on the urban context, with a focus on some non-profit initiatives1. The objective is to understand how social value generates effects and impacts on the urban context (street or neighbourhood) improving the place quality, considering both space (urban context) and effects (observing its changes over the years). A mixed method analysis is applied to a set of case studies first at the urban scale and then at the real estate scale. We consider multiple cases of temporary use in the Region of Brussels (Occupation Temporaire OT), that have been mapped and monitored by temporary.brussels. First, we conduct an urban analysis of the neighbourhood place quality (Carmona, 2019) to observe the characteristics and the trends of main socio-economic indicators, land use functions, presence of services and amenities, and ongoing transformations in the area together with local policies. Then, we will assess the impact of each temporary use case measuring a set of quanti-qualitative indicators with data from direct observations, project reports, and interviews2. The TU assessment framework has been developed based on literature review and qualitative analysis of cases in the Netherlands, in Belgium and in France. Finally, we’ll carry out a correlation analysis applying the Geographically and Temporally Weighted Regression (GTWR) (Fotheringham et al., 2015; Liu et al., 2016; Wu et al., 2019) in GIS (running R packages). Findings from this research contribute to the ongoing discourse on temporary urbanism by discussing how temporary uses support not only communities but also long-term urban development. The proposed framework for defining, measuring, and analysing temporary use provides insights for scholars, policymakers and urban planners interested in leveraging these initiatives considering a fair resource distribution for sustainable and inclusive urban regeneration.

The extreme weather events of recent years have highlighted the vulnerability of real estate assets to climate risks and the urgent need to adapt the built environment to the unavoidable impacts of climate change. Institutional investors, as key stakeholders in commercial real estate, play a critical role in this effort. However, little is known about their decision-making behaviours and the processes that drive or hinder investments for climate adaptation measures in existing assets. This paper investigates the decision-making behaviours of institutional real estate investors through the lens of institutional theory, offering a framework to analyse both the rational and the cognitive tendencies that influence climate adaptation investment decisions. Using a qualitative research approach, the study draws on semi-structured interviews with senior managers across the different management levels of institutional real estate investors in the Netherlands. The findings aim to identify and classify the underlying tendencies shaping these decisions into normative, coercive, and mimetic pressures. By doing so, this study will provide valuable insights for industry practitioners to enhance their decision-making practices towards climate adaptation, offer guidance to policymakers on where regulations, policies, and incentives are needed, and contribute to the existing body of literature on real estate investor behaviour in the context of climate change.

Purpose - Integrating sustainability considerations into valuation practices is essential for promoting sustainable real estate investments. However, a comprehensive understanding of how sustainability factors impact the value of real estate assets is required. This study addresses the growing importance of renewable energy and the underutilized potential of rooftops by proposing an innovative framework for the valuation of roofs when used for renewable energy production.

Design/methodology/approach - This study uses the concepts of residual value analysis and Highest and Best Use methodology, adapting them to create a new framework for rooftop valuation.

Findings - The value of a roof can be determined based on their energy generation capability, where the conditions for enhanced energy harvesting potential distinct a higher value to the host asset. This removes the hurdle for investors to use rooftops for renewable energy investments.

Originality - The novelty of this study lies in using the Highest and Best Use methodology in the valuation of roofs. To the best of our knowledge, no explicit valuation of roofs has been done in the context of renewable energy production.

Practical implications- This study contributes to innovative valuation methodologies by incorporating sustainable measures. Social implications - Social implications include the evaluation of third-party investments in renewable energy on rooftops. This could lead to increased investments and higher renewable energy production, thereby lowering energy costs and enhancing the energy supply's reliability.

This paper examines the limitations of the current European Union (EU) Taxonomy for Sustainable Activities as applied to real estate investments. It argues for a revised approach that incorporates the broader environmental impacts of real estate assets, including the effects on surrounding investments and infrastructure. By integrating these considerations, the taxonomy can promote more holistic and sustainable urban development practices.

De transformatie van kantoren naar residentiële ruimtes is een belangrijk onderwerp in de context van de huidige woningnood en stedelijke regeneratie. Deze transformatie omvat diverse financiële aspecten die zowel kansen als uitdagingen bieden voor ontwikkelaars. Wanneer er puur wordt gekeken naar de financiële haalbaarheid van een transformatieproject is er steeds een uitdaging (Geraedts & Van der Voordt 2004). De opportuniteit van de transformatie zit in het maximaal hergebruiken wat er reeds aanwezig is. Dit om zowel duurzame als circulaire doelstellingen te verwezenlijken. Echter vanuit een puur financieel perspectief is dit niet altijd even eenvoudig. Bestaande bouwstructuren leggen randvoorwaarden op aan het project die tot suboptimale eindresultaten kunnen leiden na transformatie. Wanneer er dan enkel een financiële waardebepaling wordt gemaakt, zoals deze vandaag gangbaar is op de markt, kan het project niet de gewenste rendementen halen. De sleutel zit in de waardebepaling, die zowel een financiële als een maatschappelijke component moet bevatten (Remøy & Van der Voordt 2007). Alleen een integrale afweging leidt tot een gedegen inzicht in de haalbaarheid van toekomstbestendige (transformatie)projecten.

Investors are currently obliged to take environment, social, and governance (ESG) issues into consideration as part of their fiduciary duty. As such, it becomes increasingly important to identify sustainable investments that also hold financial value. A sector where this is especially underdeveloped is real estate. This has a lot to do with the obfuscated conceptualization of ESG. The article identifies key gaps in the literature and practice and provides a framework to further the understanding of how ESG factors can add societal and financial value in the real estate sector. A key premise of the article is that the user in the building is grossly overlooked. Drawing on insights from behavioral social science and environmental psychology, the paper explains the role of the user in improving buildings’ ESG, also taking into account the investment value. To conclude, the article makes the case that the transition to user-centered smart real estate is the solution to improving both the environmental (E) and social (S) sustainability of buildings, as well as their investment value. Therefore, practitioners and academics are encouraged to critically evaluate and contextualize the ESG framework they are using as well as the extent to which users are considered and smart technology is employed.

Meeting rooms are reserved 30% of working hours but only used for 20% of that time. By implementing a strategy where the available capacity is leased to the wider market rather than just the building users, there is a positive impact on the economic, environmental, and social factors of the building and its surroundings. This study uses the building ‘The Globe’ in The Hague as a case study, and then projects the results to the entire city. In case of The Globe, implementing a lease out strategy achieves a reduction of 36% of the annual rent of the meeting rooms to the building's tenant. The owner benefits from a revenue increase of 12.5%, with the same operational expenses (except the reservation system), leading to a proportional higher valuation of the building. Annual energy consumption may be lowered by 6.2%. This study contributes to the literature by considering the total benefits that could be obtained by more efficient use of office space that is currently underused. The application of technology generates added value for economic, environmental, and social factors. These factors are important in real estate as they (among others) have a direct link to the Environmental, Social and Governance (ESG) analysis that investors make before proceeding with an investment.

The data generated in buildings are used for all types of purposes. The quality of information used in assisting people to escape an emergency situation is of importance. In practice today, none of the data-generating systems that aid in the escape from emergency situations is validated on a regular basis. This study is based on the smart building concept. The rationale behind this concept is to provide information about a building and the usage of that building at each moment in time. An experiment was conducted to measure the impact of different types of information on participants’ choice of exit, exit time and distance travelled. Seven identical floors of one building were used with different setups to see if the choice of exit is influenced by the type of information provided at the moment of an alarm. It was found that the information does have a significant impact on the choice of exit, escape speed and distance travelled. Furthermore, it was shown that false information can increase the time it takes to leave the building and the distance travelled, impacting the survival rate. The more imperative information is visualised, the stronger its influence is on the choices made.

Buildings are responsible for 40% of our worldwide energy consumption and 50% of this energy is converted for Heating Ventilation Air Conditioning (HVAC) systems in buildings. The increasing share of renewable energy production required to make the transition towards a carbon neutral energy system challenges the stability of the grid. Through demand response it becomes possible to activate these systems in support of grid balancing. However, this flexibility is currently not rewarded in the market. We simulate a domestic water heater participating in the balancing of the electricity net and calculated the revenue from this action. We simulate a water heater in connection with an Economic Model Predictive Controller (EMPC) which takes future usage, energy cost, and reward for delivering balanced power into account. We show that the choice of an EMPC controller is valid as it allows the setpoint to change if certain conditions are met, leading to a more optimal revenue stream from selling flexibility. We find that the economic benefits of participating in delivering balancing power is considerable and offset an increase in energy costs. The increase in energy consumption could be justified as the participation in net stabilisation allows the macro-system to integrate more renewable energy sources. More importantly, the simulations also show that the poorer the energy performance of the water heater, the more flexibility can be sold. From a policy point of view, a minimal energy performance should be determined before allowing participation in net stabilisation.