Watch now – Investing in environmentally sustainable property 

Here’s a summary of other key points raised during the discussion…

The Commercial Premium

• There is a clear commercial business case for sustainable buildings, with premiums for energy efficient assets driven by tenant demand as well as the need to protect against future regulatory changes.
• Across developed markets, we are seeing demand for green office space far outpacing supply, while the risk of non-sustainable properties becoming ‘stranded assets’ is growing.
• There is potential that might be unlocked in ‘grey belt’ under-utilised areas.

Policy

• The panel discussed the role of ‘adventurous’ local authorities and how locale may determine the level of support and demand for sustainable real estate.
• They also covered the different role of ratings, from EPC (Energy Performance Certificate) to NABERS (National Australian Built Environment Rating System), to emerging frameworks such as the Net Zero Carbon Building standard. 
• Green leases and the cost-splitting of works between landlords and tenants can have mutual benefits.

Actions

• There is an opportunity to realise meaningful change with modest, low cost adjustments – from smart thermostats to slower fan-speeds.
• It’s important to communicate with tenants to understand their requirements, overheads and how sustainable planning can save both owners and tenants money in the long term.
• It could be worth thinking about how occupiers use buildings; making sure tenants aren’t “driving around in first gear” when it comes working with an efficient building.
• Retrofitting is so often better than rebuilding when it comes to reducing carbon, working with planners and saving money.