Sustainability now the highest priority for office real estate
01.02.2012
Sustainability is the highest priority strategic issue facing office real estate decision-makers over the next ten years, according 83pc of real estate professionals surveyed for Jones Lang LaSalle Offices 2020 research.
The company said the path to consistent sustainable real estate is moving at different speeds across Europe, with new legislation driving the evolution of best practice in countries such as France, Germany and the United Kingdom, while economic constraints are impacting overall progress in other countries.
“From almost nowhere a decade ago, sustainability is now a key consideration for office real estate,” said Bill Page, director, EMEA research, Jones Lang LaSalle, who is leading the company’s Offices 2020 research programme, which covers the main issues and challenges that occupiers, investors and developers will need to consider over the next decade.
“Whilst environmental change, cost control and ethical business practices are all part of the equation, legislation is the real game-changer forcing European occupiers and investors to adapt their office buildings. Whilst the European Union requires all new buildings to be nearly zero energy by 2020, there is a growing divergence across different buildings and countries. This gap is widening and will increase over the next decade between those leading the way towards sustainable real estate and those falling behind.”
He said a clear example of enforced change is the 2011 Energy Act in the UK. “From April 2018, landlords will be unable to let out residential or business premises below a minimum standard, which is widely expected to be an Energy Performance Certificate rating lower than ‘E’. An estimated 63pc of UK stock has a rating lower than ‘E’. This will force rapid change to the majority of buildings over a relatively short timeframe.”
“Sustainability was once seen as a soft issue on the periphery of business strategy but this has now changed,” said Benoît du Passage, managing director – France and Southern Europe, Jones Lang LaSalle.
“We now have case studies where sustainable changes to buildings have improved employee productivity. Owners and developers of office stock will need to take rapid action to protect the value of their buildings and prevent them from becoming obsolete. A sustainable building will quite quickly become a prerequisite for prime property. Consequently, we expect the pricing gap to widen between sustainable and non-sustainable assets over the next few years.”