How Differentiating Through Sustainability Drives Value

At Cambia Capital, our investments in third-party certified sustainable projects are designed to generate resilient market rate returns, long-term cost savings, enhanced property value, and stronger alignment with tenant and homebuyer demands. By partnering with strong development teams and investing in highly differentiated assets, this strategy mitigates risk and helps ensure investments are better positioned to navigate regulatory changes, respond to market fluctuations, and withstand the test of time. 

After 15 years of developing and building hundreds of millions of dollars of sustainable residential real estate, the principals at Cambia Capital know the transformative power sustainable housing has on the marketplace. Sustainability not only signals the presence of quality teams, but also enhances market differentiation, driving both returns and value. 

A Signal of Better Teams
Sustainable developers must go beyond standard practices to build beyond code. For a project to achieve a third-party sustainability certification, sophisticated and thoughtful development teams must engage early to find development efficiencies. To deliver customary returns on sustainable real estate projects, teams must bring deep development knowledge and experience. In our experience, a third-party sustainable certification signals better development teams and a competitive marketing advantage upon sale or lease-up. 

Mitigate Risk with Greater Differentiation in the Marketplace
Certified projects provide the developer a competitive advantage by lowering risk. These projects offer a unique selling proposition and compelling storytelling narrative that helps foster trust with tenants and homebuyers and creates greater brand differentiation. Today, individuals with increased awareness and a growing demand for quality housing are looking for more than just a place to live. Certified sustainable projects signal better quality and value and help attract tenants and homebuyers seeking those attributes amid limited housing choices. By prioritizing environmentally friendly materials and energy efficiency - sustainable projects are less vulnerable to market fluctuations and regulatory change. This reduces risk to the developer and investors while signaling higher quality housing and offering more stable market-rate returns. 

Third-party certified sustainable projects strengthen market-rate returns regardless of the market cycle. They are an indication of stronger development teams with appropriately differentiated assets which creates a winning formula for generating market-rate returns. 

At Cambia Capital, we know that what we build today matters. Transitioning the built environment towards a net zero economy is essential for achieving a sustainable future.

For further information, please contact: 
info@cambiacap.com