Growing demand for sustainable commercial property is changing investment trends2nd October 2013

The growing demand for sustainable commercial property is changing the way investors are building their portfolios.

In a survey of occupiers in the finance and business services sector, three quarters said they were willing to pay more for a green building.

Commercial property has the potential to be the perfect reflection of an organisation’s vision and values and, with buildings contributing to nearly 40 per cent of CO2 emissions, environmentally friendly office space is becoming a top priority for UK business.

Chris Baguley said his company of Bridging Finance Ltd has experienced a rise in the number of commercial property investors looking for short term finance to fund refurbishments of existing properties in order to meet this increase in demand for green buildings.

“Some the largest global pension funds are already incorporating environmental concerns into the management of their property portfolios and commercial property investors need to recognise this and look for eco opportunities in their property portfolio.”

Eco-friendly buildings are not just good for the environment they have proven commercial returns as well. Not only are they an attractive option for eco conscious firms, they benefit from lower operating costs and are reported to have shorter vacancy rates and longer tenancy agreements.

Chris said: “Green refurbishments don’t need to cost the earth, yet can generate savings of up to 25 per cent for tenants. Small changes such as installing smart meters for water and electricity and rainwater harvesting systems will boost the eco rating of your premises.

“There are also green improvements to be made outside, installing cycle racks for employees and carbon offsetting through planting shrubs and trees will all increase the eco desirability of your office space.”

It’s not just business owners who see the benefit of sustainability, research shows that more than 90 per cent of workers value working in an office with a green agenda, which increases a green property’s appeal on the rental market.