March 23, 2015
Property owners could make a greater return on their investments if they improved the sustainable credentials of their buildings, according to a new report published by CBRE. According to the study of 280 investors published in the Investor Intentions Survey 2015, a growing number are taking into account environmental considerations which they consider have a direct influence on the returns and value of their assets. Nearly three-quarters (70 percent) believe sustainability is either a critical or desirable criterion when making investment decisions with only 15 percent claiming that “sustainability is not a significant consideration in selecting assets to buy”. The report’s authors claim that while the property industry has been seeking evidence of the financial benefits of sustainable buildings for some time, this has been difficult to define given the complex factors that influence transaction prices.
“The survey results demonstrate that, while it may be difficult to define value increases or yield impacts, sustainability is clearly on the agenda for investors across EMEA”, claims Rebecca Pearce, EMEA Head of Sustainability at CBRE. “Coming at a time when market activity is predicted to increase this is great news for a more sustainable built environment. It’s a perfect green storm in many ways. Occupiers want to be located in buildings with sustainable features to attract and retain talent, and investors don’t want to fall foul of regulation and take a financial hit if buildings are obsolete. In essence, properties which are not meeting such criteria are losing out, as both the marketability and value of the property is tapered. The evidence is loud and clear – owners and developers need to improve and adapt their commercial property.”