Steven J. Schleider
A s an appraiser, it’s important to be able to articulate the decisions underlying investment in real estate because the public relies on the appraisal profession to provide unbiased and clear presentation of the facts and judgment employed in real estate valuation. The key stake holders and decision makers within the real estate investment sectors who rely upon appraisal reports to finance new construction or major renovation projects want to better understand specifics of energy savings and efficiency in design and how that translates into property value. Metropolitan Valuation Services, which Steve co-founded and where he serves as president, has provided appraisal and valuation services in support of commercial mortgage lending due diligence for many of the privately-owned ‘green’ buildings within New York City. Steve is energized by the public sector also embracing ‘green’ building, such as New York City’s Local Law 86, the first legislative mandate of its kind, which requires most city-owned and funded buildings to achieve LEED Silver certification. According to the Urban Green Council, the Law is expected to ‘green’ more than $12 billion worth of city construction by 2017. Additionally, Steve is alert to the numerous action plans, recommendations and regulations governing mandated energy audits, benchmarking, retuning, and light retrofits for large buildings that need to be factored into commercial property valuation analyses. Given the social and legislative mandates towards ‘green’ buildings, Steve believes it’s only a matter of time before lenders require that their due diligence underwriting consider financing risks associated with non-‘green’ assets. To properly appraise properties in the near and not-too-distant future may require a working knowledge of ‘green’ technology and ‘green’ building systems at a level well beyond what most appraisers currently possess. The course of study to prepare for the LEED AP accreditation was among the more demanding in Steve’s professional career, but as NYC’s only commercial property appraiser with the LEED AP designation, it has given him understanding of and insight into the synergies involved in building green: from site sustainability and water use efficiency, to the strategies employed in coordination of energy use, indoor air quality and design innovations. These all have an impact on property operations and, by extension, property value. Appraisers are taught to reflect the thought and actions of real estate investors in their analyses. Those market participants, through buying real estate, dictate pricing paid for properties. Simply stated, appraisers need to understand the ‘why’ behind the investment decisions. As ‘green’ becomes a more important component of the ‘why’, Steve is in the forefront of providing insight and answers to users of appraisal services.
Steven J. Schleider, MAI, FRICS
LEED Accredited Professional BD+C
Metropolitan Valuation Services, Inc.
44 East 32nd Street, 11th Floor
New York, NY 10016