Property markets throughout the world are increasingly reflecting the importance of sustainability in investment and occupational decisions. Many investors now place the sustainability performance of property funds and investment managers in which they invest as one of the key deciding factors when it comes to new capital allocations. In fact, evidence suggests that the value of the worst performing buildings will fall as legislation tightens and, without intervention, may help push buildings towards obsolescence.
Furthermore, Invel believes that “Green” properties will increasingly justify a “green premium valuation” upon exit and that adopting sustainability measures present opportunities to reposition and enhance existing buildings. With a growing demand from occupiers to reduce environmental impacts, efficient buildings which have higher sustainability credentials should be more attractive. Research shows that green design attributes of buildings and indoor environments can improve worker productivity and occupant health and well-being, resulting in bottom-line benefits for businesses.