James Finlay

The Seven Tribes of Real Estate and their Bias in Resource Efficiency Investment Behavior

James Finlay of Wells Fargo deconstructs energy/resource upgrade investment behavior issues within each property asset class to identify investment hurdles so energy efficiency upgrade risk can be more precisely understood. Owners, brokers, bankers, appraisers, underwriters and other real estate professionals have naturally formed around the seven primary property asset classes. These seven “tribes” of professionals have a shared risk culture particular to their respective market realities driving common behavior patterns throughout the ownership cycle, i.e. purchase, finance, operations, occupancy and (importantly) capital upgrades. Barriers to making energy/resource upgrades can be different for each tribe and eight primary investment hurdles are identified and their respective impacts discussed. Finlay gives examples on how this tribe/hurdle matrix has being used to pinpoint investment blockage and influence behavior.

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