Megatrends and Their Consequences for German Real Estate

Bachelor Thesis from the year 2010 in the subject Business economics - Miscellaneous grade: 13 European Business School - International University Schloß Reichartshausen Oestrich-Winkel (Real Estate Management Institute) language: English abstract: At the beginning of 2009 the owner of the Empire State Building unveiled his plan to go green. The world famous skyscraper was completed in 1931 in New York USA. The Art Deco building is currently in the midst of a $500m renovation where $100m of these funds are designated for the green initiative. The green renovations are expected to decrease energy expenditures by 38 percent or $4.4m annually (Jonas 2009).The example of the Empire State Building is not unique since increased environmental awareness has affected nearly every industry. Companies across all industries and nations have launched green initiatives in order to improve their environmental performance and in response to the expressed concerns regarding their immediate environment. Currently corporations compete to adopt and implement sustainable policies.Particularly the role of the real estate industry in reducing the environmental burden is considered to be the most important as this industry is one of the largest emitters of harmful chemical substances and a major user of natural resources (Nelson 2007 p. i). However it is not enough to consider only the ecological aspects of real estate. This is because real estate as a commodity has an enormous economical impact. Other dimensions including economic and social aspects must also be examined.The term sustainability unites the three relevant dimensions. Over the last 20 years bringing environmental protection to the same level as economic development and social concerns sustainability has become a worldwide guiding principle. Sustainable development takes the future of mankind into account (Grunwald & Kopfmu?ller 2006 p. 7). In the context of global challenges sustainability mean