January 9, 2013
It pays to check the green credentials of manufacturers
Generation from Knoll
There is a theory that when companies talk about issues such as corporate social responsibility they are doing so because it helps them to achieve their business goals. This is the coldly rational thing to do according to people like free market guru Milton Friedman who argues that companies should not actively pursue altruistic ends unless that pursuit is ultimately in the interest of their shareholders. As Friedman puts it: ‘Hypocrisy is virtuous when it serves the bottom line. Moral virtue is immoral when it does not’.
The news from the weekend that Axa Real Estate is looking to raise around £1bn to invest in buildings with very long leases has resparked the debate into what sort of lease represents the best value for investors and tenants in these uncertain times. The new fund will target commercial properties with minimum twenty year leases even though investors have to pay a premium for such properties and the majority of occupiers don’t want them. 
