Property | 31 January 2025
Watch now – Investing in environmentally sustainable property
Kevin McCloud MBE joined an expert panel to discuss the premium on sustainable designs and retrofits – and the best ways businesses could benefit.
Our Head of Commercial Real Estate, Ross Ironside, was joined by:
- Kevin McCloud MBE – Designer and Broadcaster
- Bram Adema – Founder and CEO of real estate sustainability consultants CFP Green Buildings
- Anna Hollyman – Co-Head of Policy and Places at the UK Green Building Council
- Dan Higginson – Director of Development & Leasing at Greycoat
Our panellists’ key take aways
“Due diligence and research – forewarned is forearmed.” – Kevin McCloud MBE
“Retrofit is about protecting the long-term value of the asset – in line with the net zero transition but also in line with future market expectations and climate resilience.” – Anna Hollyman
“My advice is to take advice – you want to go into this with your eyes wide open.” – Dan Higginson
“While you’re protecting your family’s investments, while you’re protecting you’re company’s investments in real estate, while you’re helping improve them – we’re also helping society. That’s a really big responsibility that we all have.” – Bram Adema
here to help
The importance of augmenting your plans with a professional support team was well highlighted during our event. We’re proud to offer our clients a range of practical tools and services designed around their climate goals, from carbon planning to our new Building Efficiency Assessment Tool.
“It doesn’t really matter whether it’s a castle, a house or a 1960s office block, there are a lot of things you can do to save money and energy – the major wins are the cheapest ones.”
Kevin McCloud MBE
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.
More insights