April 25, 2007—Sustainable office buildings will give investors a greater return on their investment than buildings built to standard regulations, according to a new report released by property advisors GVA Grimley. The report examines how the increasing prevalence of the climate change agenda is widening the disparity of investment performance between “green” and “non green” assets.
An examination of a BREEAM “Excellent” rated building and an office built to traditional standards demonstrates that the former should achieve a higher rent, have the potential for stronger rental growth, and a lower risk premium, notes the report. Capital values, should therefore, be higher and there is growing evidence in the US to support this, says the report.
Furthermore, benefits to occupiers, such as lower operating costs and greater staff productivity. should translate into a higher rent for more sustainable buildings. Greener buildings provide a better potential long-term investment due to reduced depreciation, and sustainable offices are less likely to require renovation and refurbishment to meet new legislation and energy performance indicators, notes the report. The sustainability of an office building could also influence the willingness of banks and financial institutions to provide a loan.
GVA Grimley has been advising property occupiers, owners, developers, investors, lenders and landowners for more than 180 years. For more on the company and its sustainable building report, visit the Web site.
