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The need to be green
Environmental issues have finally made it to the top of the commercial property agenda as companies large and small feel the impact of new regulations and the weight of public opinion.
Building consultancy experts at Knight Frank in Cardiff report that more and more businesses are responding to the need to be green when it comes to choosing a building, though for many the economic benefits may only be apparent in the long term.
As Government regulations begin to take hold, there are now strict requirements on heating, insulation and the use of sustainable or recyclable materials. When it comes to choosing a building, green is good.
Matt Phillips of Knight Frank’s Cardiff office said: “Environment has finally made it onto the main agenda. Big parent companies are leading the way and smaller subsidiaries and suppliers are being forced to follow suit. Public opinion has never been stronger when it comes to considering the impact of development on the natural environment and developers have to respond.
It’s fair to say that they feel increasingly pressured by the amount of legislation that is coming through and although everyone can see that environmental awareness is for the greater good; in the short term it costs money.”
New buildings have to meet the latest requirements, but developers refurbishing older property can find it hard to comply and historic buildings may be unsuitable when it comes to introducing energy saving systems. Listed buildings, for example, cannot be fitted with new windows and may not be able to have the latest efficient ventilation.
In 2008, Knight Frank will be relocating its global headquarters from 		Hanover Square, W1, a traditional London square, to 55 Baker Street, W1 a building which is being comprehensively redeveloped. Its environmental strategy has been awarded the coveted BREEAM rating of 'Excellent'. Knight Frank is taking 100,000 sq ft across three floors in an office redevelopment that will include state of the art systems.
Matt Phillips explained: “It’s a trade off. When our clients are looking for an older building with character they sometimes have to accept that it cannot be as ‘green’ as a brand new development, and subsequently its running costs can be higher. Those taking accommodation in new eco-friendly buildings get the benefit of lower energy bills and fewer emissions, though the set up costs can mean it takes a while for the monetary benefits to filter through.
It is much easier to design an eco-friendly building from scratch, rather than convert an old one. But there’s no doubt that people’s perceptions are changing. A decade ago a small carbon footprint would not have been a ‘must have’ as a company looked for a new building. Now it is somewhere near the top of the wish list and developments are emerging that have features, such as solar heating and even wind turbines.
The impact of new regulations has been particularly great on public sector buildings, which have to be seen to be taking a lead. Hi-tech industries and high street retailers also recognise that state-of-the-art energy saving systems and recycling schemes fit with their overall image and are what the public expects of them.
We will see more legislation over the coming months, and we will be advising many more clients on the changing requirements. One thing is certain, the regulations are going to become even tighter, so every company should put green on their buildings agenda sooner rather than later.”