Real Estate Sustainability
RQ1: What is “sustainability”?
Theory
Sustainability involves making choices about how an area can grow economically, social
equity and how can the environment be protected in such a way that balances this complex issue.
Decision theory provides an efficient approach to possible outcomes when choices are uncertain,
and sustainability is woven into the framework as it takes these options and measures for the best
method (Kamari, 2023). Sustainability has its level of issues and decision theory helps to provide
the necessary means to analyze the intricacies of these uncertain outcomes including identifying
the many options, assessing risks, and helping to reach a consensus between stakeholders (Ren et
al., 2011). Systems theory can help to determine how to define sustainability by addressing the
material existence of sustainability and how information is exchanged using different variables
and that information is applied to systems (Ruggerio, 2021). Businesses work to invalidate
obstacles while new intelligence on how to best implement sustainability (Sanchaniya &
Geipele, 2024).
Research
Sustainability is a concept that considers the life cycle of a building and how it will
impact the environment in the long run (Lambourne, 2022). Sustainability involves people, the
environment, and how profits impact this complex system. The long process of sustainability
involves endless development from social justice, environmental safeguards, and remunerative
equity (Brundtland Report, 1987). Bond et al., (2012) state that ‘‘any process that directs
decision-making towards sustainability’’ is the one that could provide the best definition of
sustainability. The definition of sustainability is a challenge that will continue to be faced by all
Real Estate Sustainability
and the biggest hurdle in the real estate industry involves project management and sustainability
(Gutiérrez, 2014; Bolis et al. 2017).
Analysis
Sustainability involves protecting the environment and enabling it to grow with the
choices that have been made. Decision theory coupled with sustainability takes an efficient
approach and views the uncertain outcomes allowing for the best possible strategy and option for
the framework chosen. Decision theory navigates the indecisiveness of sustainability evaluating
the balance between the environment and economic strategies. The lifespan of the building has
an impact through its time in operation and sustainability delivers from the time its constructed
to its demolition.
RQ2: What is “sustainable development.”
Theory
The decision theory helps to shift the learning mechanism to spread knowledge
effectively to organize stakeholders so participation in comprehending what sustainable
development can be to help promote innovation (Waas et al. 2014; Nooteboom, 2007).
According to Mitlin (1992), there have been different viewpoints from scholars on the definition
of sustainable development and it deals with economic growth being the link but there are still
opposing viewpoints. Consequently, there has been little input from the government to impose
their analysis of the lack of policies governing sustainable development (Mitlin, 1992).
Schellnhuber (1999) states that sustainable development consists of two populations having a
close relationship where they can coexist between natural and social fluctuations. The notion of
sustainable development bestows an assured social and environmental background which can be
proven with the sustainability assessment (Bebbington et al. 2007).
Real Estate Sustainability
Research
Sustainable development suggests that the building of industries and an ecosystem should
control a benevolent balance and work to achieve common ground (Niu & Qiu, 2023).
Sustainable development enables individuals to create better resources and allows politicians the
tools they need to form policies (Corvellec,D2016). Many scholars fail to comprehend the
definition of sustainable development and that the research details the theory of development
much like trying to marry a noun to an adjective (Gale, 2022). Defining sustainable development
should focus more on capacity-building skills that will explain the here and now Gale, 2022).
Furthermore, real-world issues bring together processes and sciences needed to fix issues Gale,
2022). Plessis (2007) states that a sustainable development should be viewed as an exhaustive
explanation to the complex dilemma of interconnected networks.
Analysis
Sustainable development engages stakeholders and advertises awareness and engagement
through innovation utilizing decision theory. There has been minimal involvement with the
government in setting up policies so sustainable development can be refined. A powerful
infrastructure is essential for sustainable development to continue to be the pillars for
environmental and social prosperity.
Formulating policies helps those in the real estate market to generate exceptional assets
and sustainable development allows for more desirable resources. Scholars have worked
tirelessly to define sustainable development and there needs to be further research that can
implement practical applications. There are many challenges that sustainable development
phases and there needs to be an overarching comprehensive response that can be agreed upon.
Real Estate Sustainability
RQ3: How should sustainability be incorporated into the world of Real Estate Operations?
Please provide several examples that are not discussed in this week’s reading assignments.
In addition, discuss how your examples are connecting to changes in the Real Estate
marketplace. Where applicable provide JPEG/Photos/Drawings.
Theory
Decision theory can be used in conjunction with sustainability in the world of real estate
because an investor could choose an effective strategy to eliminate waste management, they
could also decide on how to allocate resources for conservation to evaluate the cost of solar in
homes (Kamari, 2023). Decision theory also aids the world of real estate by understanding a
building’s life cycles, how important sustainability enhancements could be to an entire area or
just considering when to renovate to ensure the equity is protected (Wofford, 2024).
Research
Organizations that consider sustainability when doing real estate usually have a longer
performance even though there are limitations sanctioned by ecological factors along with social
and economic issues (Tupenaite, et al., 2018). Strategic sustainability aims to provide clear-cut
step-by-step guidance to accomplish these goals (Hallstedt et al., 2013). Sustainability is
incorporated into a building's life cycle from the early design to what type of materials will be
used in the building, the location, and how it is to be constructed. The companies constructing
these buildings have a long-term focus and they develop tactics and establish a set of plans that
involves sustainability (Thaher & Jaaron, 2022). Buildings in service in 2021 makeup 80% of the
buildings that will be in service in 2050 and due to the life cycle sustainability will help to
promote efficient resources for construction (Apel et al., 2022).
Real Estate Sustainability
Analysis
Decision theory provides structure when faced with complex decisions in the real estate
world. The theory helps to evaluate risk and optimize the outcomes in real estate. More cities are
looking towards becoming environmentally friendly and sustainability considers the life cycle of
real estate from its planning phases to construction and the end of the life cycle all while creating
longevity. Sustainability takes into consideration water conservation measures, energy
efficiency, and going green. The pillars associated with sustainability are environmental, social,
and economic. There is a vital push to keep sustainability in the limelight because it improves
efficiency overall and that efficiency is shared in the remote future. Figure 1 shows how real
estate and sustainability have a critical understanding of stakeholders. It allows for sound
investments.
Figure 1
Sustainability and Real Estate in a Global Environment
Real Estate Sustainability
Note. Investment decisions and protecting natural resources (Worschech & Lützkendorf, 2022).
Future-proof real estate companies through sustainable development of institutional building
stocks – basics and tools.DIOP Conference Series. Earth and Environmental Science,D1078(1),
12114.
RQ4: How should sustainable development be incorporated into the world of Real Estate
Operations? Please provide several examples that are not discussed in this week’s reading
assignments. In addition, discuss how your examples are connecting to changes in the Real
Estate marketplace. Where applicable provide JPEG/Photos/Drawings
Theory
Decision theory can be used for sustainable development and real estate because the
theory ways options and helps to determine possible outcomes when there are a variety of
choices of uncertainty (Kamari, 2023). Another theory that can aid sustainable development to
be incorporated into real estate is that of complexity where the theory utilizes systems like social
systems and ecosystems (Stacey et al., 2000). Complexity theory revolves around variety and
change in that a sustainable development should be able to adapt to the future to include the
environment and be able to respond to whatever disposition that's placed upon it (Rotmans et al.,
2001; Rotmans et al., 2003). According to complexity theory, there is a volatile and complex
relationship that yields different outcomes in real estate (Dabbous et al., 2024). Furthermore,
variables can be interpreted by considerable sets of inventive conditions that are connected in
acceptable configurations to extrapolate an explanation for a plausible outcome (Woodside,
2014).
Real Estate Sustainability
Research
The issue with sustainable development according to Storbjörk etDal., (2018), is that there
is a bigger adaptation that must take place that supersedes an individualistic view of societies and
organizations. Allocation agreements can help push sustainable development so this can be used
in the real estate market to advance future programs and implement requirements that can aid
building regulations on a national level (Candel & Törnå, 2022). In the real estate market,
sustainable development can be written into policies so developers will know what land is
allocated and what specific agreements are in place for building in those areas (Brokking etDal.,
2020; Candel etDal., 2021). Sustainable development includes all spaces and scales for all places
that are livable (Brundtland Commission 1987).
Analysis
Many developers are moving towards buildings that are energy efficient so they can
conserve water, work to eliminate waste and they are also utilizing biodegradable material.
Complexity theory views the challenges that sustainable development comprises of and breaks
down the unpredictable nature of the exchange. When complexity theory is applied it allows
policymakers to take a holistic approach to sustainable development and implement strategies
whereby the management can be adaptive under varying circumstances. An example is a
developer having the ability to understand the final product of a build-out and to view the gaps
that may emerge utilizing complexity theory. In Figures 2 and 3, the photos show how
sustainable development can take on a variety of solutions to address environmental factors such
as solar and charging stations.
Real Estate Sustainability
Figure 2
Solar Integration
Note. Solar is being used to reduce carbon emissions. Vardopoulos, I., Papoui-Evangelou, M.,
Nosova, B., & Salvati, L. (2023). Smart ‘Tourist Cities’ Revisited: Culture-Led Urban
Sustainability and the Global Real Estate Market.Sustainability,15(5), 4313.
Real Estate Sustainability
Figure 3
Note. Charging station for electric cars to reduce energy interdependence.
Vardopoulos, I., Papoui-Evangelou, M., Nosova, B., & Salvati, L. (2023). Smart ‘Tourist Cities’
Revisited: Culture-Led Urban Sustainability and the Global Real Estate
Market.Sustainability,15(5), 4313
Real Estate Sustainability
References
Apel,DF.,DBoland,DB.,Dde la Motte,DH.,DMoore,DA.,DReiter,DS.DandDSjodin,DE.D(2022). “Accelerating green
growth in the built environment”,DMcKinsey and Company,Davailable
at:Dhttps://www.mckinsey.com/capabilities/operations/our-insights/accelerating-green-growth-in-
the-built-environment
Bebbington, J., Brown, J., & Frame, B. (2007). Accounting technologies and sustainability assessment
models. Ecological Economics, 61(2-3), 224-236. https://doi.org/10.1016/j.ecolecon.2006.10.021
Brokking, P., Liedholm Johnson, E., & Paulsson, J., etDal. (2020). Implementation strategies for
sustainable urban development. In E. Hepperle (Ed.), Methods and concepts of land management
(pp. 223–234). Vdf Hochschulverlag AG an der ETH Zürich.
Bolis, I., Morioka, S. N., & Sznelwar, L. I. (2017). Are we making decisions in a sustainable way? A
comprehensive literature review about rationalities for sustainable development. Journal of
Cleaner Production, 145, 310-322. https://doi.org/10.1016/j.jclepro.2017.01.025
Bond, A., Morrison-Saunders, A., & Pope, J. (2012). Sustainability assessment: the state of the
art.DImpact Assessment and Project Appraisal,30(1), 53–62.
https://doi.org/10.1080/14615517.2012.661974
Candel, M., & Törnå, N. (2022). Housing developers’ perceived barriers to implementing municipal
sustainability requirements in swedish sustainability-profiled districts.DJournal of Housing and
the Built Environment,D37(4), 1693-1721.Dhttps://doi.org/10.1007/s10901-021-09923-z
Candel, M., Karrbom Gustavsson, T., & Eriksson, P. E. (2021). Front-End Value Co-Creation in
Housing Development Projects. Construction Management and Economics, 39(3), 245–260.
https://doi.org/10. 1080/01446193.2020.1851037
Real Estate Sustainability
Corvellec, H. (2016). Sustainability objects as performative definitions of sustainability: The case of
food-waste-based biogas and biofertilizers. Journal of Material Culture.
https://doi.org/10.1177/1359183516632281
Dabbous, A., Aoun Barakat, K., & Tarhini, A. (2024). Digitalization, crowdfunding, eco-innovation and
financial development for sustainability transitions and sustainable competitiveness: Insights
from complexity theory. Journal of Innovation & Knowledge, 9(1), 100460.
https://doi.org/10.1016/j.jik.2023.100460
Gale, R. (2022). The war against sustainable development theory: Public interest as the ethical order for
the 2030 Sustainable Development Goals. Geographical Research, 60(2), 347-357.
https://doi.org/10.1111/1745-5871.12526
Gutiérrez, M. (2014). Applying PRiSM Methodology in the Canadian Construction Sector. Study of
Benefits, Challenges, and Constraints. World Journal 3,4. www.pmworldjournal.net
Hallstedt, S. I., Thompson, A. W., & Lindahl, P. (2013). Key elements for implementing a strategic
sustainability perspective in the product innovation process. Journal of Cleaner Production, 51,
277-288. https://doi.org/10.1016/j.jclepro.2013.01.043.
Kamari, A. (2023). From decision theory to informed decision-making in the design of sustainable high-
performance buildings.DSustainability,15(22), 15784.Dhttps://doi.org/10.3390/su152215784
Lambourne, T. (2022). Valuing sustainability in real estate: A case study of the United Arab
Emirates.DJournal of Property Investment & Finance,40(4), 335-
361.Dhttps://doi.org/10.1108/JPIF-04-2020-0040
Mitlin, D. (1992). Sustainable Development: A Guide to the Literature. Environment and Urbanization.
https://doi.org/10.1177/095624789200400112
Real Estate Sustainability
Nooteboom, S. (2007). Impact assessment procedures for sustainable development: A complexity theory
perspective. Environmental Impact Assessment Review, 27(7), 645-665.
https://doi.org/10.1016/j.eiar.2007.05.006
Niu, K., He, W., & Qiu, L. (2023). Symbiosis coordination between industrial development and
ecological environment for sustainable development: Theory and evidence. Sustainable
Development, 31(4), 3052-3069. https://doi.org/10.1002/sd.2569
Plessis, C. D. (2007). A strategic framework for sustainable construction in developing countries.
Construction Management and Economics, 25(1), pp.67-76.
https://doi.org/10.1080/01446190600601313.
Report Brundtland (1987). Our common future: report of the World Commission on Environment and
Development. Oxford University, Oxford
Ren, Z., Yang, F., Bouchlaghem, N., & Anumba, C. (2011). Multi-disciplinary collaborative building
design—A comparative study between multi-agent systems and multi-disciplinary optimisation
approaches. Automation in Construction, 20(5), 537-549.
https://doi.org/10.1016/j.autcon.2010.11.020
Rotmans, J., Kemp, R., van Asselt, M., Geels, F., Verbong, G., Molendijk, K., & van Notten, P. (2003).
Transition management.DKey to a Sustainable Society (243 pp). Assen: Koninklijke Van
Gorcum.
Rotmans, J., Kemp, R., van Asselt, M., Geels, F. W., Verbong, G. P. J., Molendijk, K., & Van Notten, P.
(2001). Transitions & Transition management: The case for a low emission energy supply. ICIS.
Ruggerio, C. A. (2021). Sustainability and sustainable development: A review of principles and
definitions. Science of The Total Environment, 786, 147481.
https://doi.org/10.1016/j.scitotenv.2021.147481
Real Estate Sustainability
Sanchaniya, R. J., & Geipele, I. (2024). Impact of strategical sustainability on real estate Industry’s
sustainability performance.DFoundations of Management,16(1), 59-
66.Dhttps://doi.org/10.2478/fman-2024-0004
Schellnhuber, H. J. (1999). ‘Earth system’ analysis and the second Copernican revolution. Nature,
402(6761), C19-C23. https://doi.org/10.1038/35011515
Stacey, R. D., Griffin, D., & Shaw, P. (2000).DComplexity and management: Fad or radical challenge to
systems thinking? Psychology Press.
Storbjörk, S., Hjerpe, M., & Isaksson, K. (2018). ‘We cannot be at the forefront, changing society’:
Exploring how Swedish property developers respond to climate change in urban planning.
Journal of Environmental Policy & Planning, 20(1), 81–95.
https://doi.org/10.1080/1523908X.2017.1322944
Thaher, Y. A. Y. & Jaaron, A. A. M., (2022). The impact of sustainability strategic planning and
management on the organizational sustainable performance: A developing-country perspective.
Journal of Environmental Management, 305, p.114381.
https://doi.org/10.1016/j.jenvman.2021.114381.
Tupenaite, L., Kaklauskas, A., Lill, I., Geipele, I., Naimaviciene, J., Kanapeckiene, L., & Kauskale, L.,
(2018). Sustainability assessment of the new residential projects in the Baltic States: A multiple
criteria approach’. Sustainability, 10(5). https:// doi.org/10.3390/su10051387.
Waas, T., Hugé, J., Block, T., Wright, T., & Verbruggen, A. (2014). Sustainability Assessment and
Indicators: Tools in a Decision-Making Strategy for Sustainable Development. Sustainability,
6(9), 5512-5534. https://doi.org/10.3390/su6095512
Wofford, L. (2024). Real estate insights back toDtheDbasics of sustainability.DJournal of Property
Investment & Finance,42(1), 112-119.Dhttps://doi.org/10.1108/JPIF-08-2023-0076
Real Estate Sustainability
Woodside, A. G. (2014). Embrace•perform•model: Complexity theory, contrarian case analysis, and
multiple realities. Journal of Business Research, 67(12), 2495-2503.
https://doi.org/10.1016/j.jbusres.2014.07.006
Worschech, T., & Lützkendorf, T. (2022). Future proof real estate companies through sustainable
development of institutional building stocks – basics and tools.DIOP Conference Series. Earth
and Environmental Science,1078(1), 12114.Dhttps://doi.org/10.1088/1755-1315/1078/1/012114
Vardopoulos, I., Papoui-Evangelou, M., Nosova, B., & Salvati, L. (2023). Smart ‘Tourist Cities’
Revisited: Culture-Led Urban Sustainability and the Global Real Estate
Market.Sustainability,15(5), 4313. https://doi.org/10.3390/su15054313
