- Efficient management of building operation by exploiting the digital revolution through use of building information models in asset management and exploiting smart building technologies;
- Owners and tenants cooperating through green lease structures to incentivise and optimise building efficiency and resource usage;
- Shifting portfolios towards more sustainable asset structures, via repositioning, retrofitting and redevelopment;
- Embedding real estate activity within a wider urban sustainability through cooperation with city governments and other urban stakeholders.
- In the investment channel, an increasing proportion of investment funds have ethical/green/sustainability filters to their investment policies: less sustainable buildings will increasingly be excluded from their acquisition policies, as will developers or real estate managers who do not operate sustainable policies. These latter will also be unable to access burgeoning green debt funds. Higher capital costs and less demand for less sustainable product will damage performance and capital growth;
- In the occupier channel, tenants gain from greater building efficiency and lower operating costs, with benefits shared between tenant and landlord; more profitable occupiers are less likely to suffer financial distress creating more rental stability and lower vacancy rates;
- Increasingly, the best and most mobile employees (particularly amongst the millennials) are demanding to work for firms and organisations that are committed to sustainability and in environmentally-sustainable workplaces – an effect operating all along the value chain.
- Investors will seek out firms and funds committed to the principles
- Tenants will seek to let from owners and managers committed to the principles
- Best employees will seek to work for firms committed to the principles
- Cities will seek to partner and work alongside organisations committed to the principles
- Competitors, seeing the business advantages, will commit to the principles
- Written by
Last edited 16 Mar 2021
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