Global warming has had no direct affect on income property values. Indirectly, the affect has been momentous. The concept of global warming has started a revolution. Developers and owners are seeking more efficient ways to build and maintain their properties to conform to the concept of global warming. To accomplish this they are finding new ways to reduce heating and cooling costs, provide clean air, reduce noise, minimize energy output, streamline employee transportation, and pursue like initiatives.

Buildings with characteristics that respond to global warming have lower operating expenses, higher net operating income (NOI), more cash flow, and better liquidity than competitive properties without the global warming initiatives. Each global warming investment can project the savings affect and add on to NOI. Given a reasonable capitalization rate, the new NOI will contribute to the value equation to achieve an amount above and beyond the global warming investments. As demand increases from investors for more efficiently run buildings, there will also be an added bump in the property’s value through a lower capitalization rate.