However the acknowledgement and incorporation of sustainable initiatives is a factor that is becoming increasingly important in the definition of what makes a ‘prime’ property, whether it be a new office development, a shopping centre or an industrial estate.
While it is very difficult to define independently a stand-alone value that can be attributed to all sustainability or green measures at a property, it is definitely possible to enhance the value or rental rates of a given property through the application of green measures. Such measures could include taking steps to attain green building certificates, such as:
Global research carried out by The World Green Building Council in 2013 demonstrates the value of these measures. The data shows properties with green building accreditations, such as those listed above, see rental rates improve by 19.7 per cent when compared with properties without. A BREEAM in Use accreditation was achieved at 5 Aldermanbury Square, London EC2, where Savills completed this on behalf of owner Deka Immobilien. The property gained an internationally recognised standard. This rekindled new energy efficient initiatives, with over £58,000 of savings per annum being identified.
What’s more, energy efficient properties, or those that use few resources, will have lower overall running costs and will, in turn, be more attractive to cost-conscious tenants looking to reduce overheads. An example of this is Kings Place (picture above), a multi-let office building in London N19 where Savills operates an ISO 14001 environmental management system. The processes in place have facilitated a five per cent reduction in total building electricity consumption in 2015 through an LED lighting upgrade, and a 10 per cent increase in waste recycling rates through a comprehensive review of waste services offered to tenants.
So although there may be no such thing as a defined ‘green value’, assets without such attributes will fall short of what’s become standard in a world where the bar for sustainability has been raised.
This blog was originally published here.
Sustainability Director, Savills UK