New research carried out by CB Richard Ellis (CBRE) in the US has revealed that green office buildings can not only command higher rents than their older counterparts, but also tend to have better occupancy rates. The study looked at 150 buildings managed by CBRE and spoke to more than 2,500 tenants in these properties.
Researchers focused on premises that are certified under the Leadership in Energy and Environmental Design (LEED) scheme run by the US Green Building Council. According to CBRE's findings, LEED properties demonstrated a 3.1 per cent rise in rental rates and occupancy levels over the course of three years. Meanwhile, tenants can look forward to a reduction in utility costs of 21 per cent on average when such charges are sub-metered.
The organisation added that there is rising demand from occupiers for green office space, while the potential to generate a higher rental income is likely to attract investors to the sector. Last month, the Royal Institution of Chartered Surveyors highlighted the importance of ensuring commercial property portfolios will meet sustainability benchmarks. The association explained that new legislation being introduced in many nations to support green buildings will have a negative impact on investors if they are not prepared.
- Monday 10 October 2011