Home > Green London office buildings could achieve 12.3% rental premium

Green London office buildings could achieve 12.3% rental premium

By: Bryn James Category: Insights

New research from Knight Frank and BRE, the creators of BREEAM, shows London office buildings that achieve the highest sustainability standards can achieve up to a 12.3% rent premium.

As the focus on sustainability continues to grow, it is becoming an increasingly important consideration for London as a major global office market. The demand for sustainable real estate in the capital is being driven by a combination of top-level investor pressure, risk reduction, and regulatory reforms.

Yet whilst it’s clear that sustainability is becoming increasingly important in both the occupier and investor sectors, calculating the actual financial gain that investors, landlords, and developers may earn from green-rated buildings has proven difficult. This is largely owing to the challenges of measuring what makes a building green, as well as the vast varying quantity of data required to complete the analysis.

Green research

Real estate consultants Knight Frank teamed up with BRE, the creators of BREEAM to quantify the impact of BREEAM ratings on prime central London office rents. By combining BREEAM ratings with Knight Frank data, which covers transaction activity over the last decade for more than 2,700 central London office buildings, it was possible to identify the impact of green ratings on rents.

Waverley’s installation of RBL-C Roller Blinds with Verosol Enviroscreen blind fabric – the sustainable choice

The results are optimistic for those who have invested in sustainable office real estate – with a significant positive effect of Very Good, Excellent and Outstanding BREEAM ratings on prime central London office rents – ranging from 3.7%-12.3% premiums.

Sustainability is here to stay

This research further demonstrates the importance of keeping sustainability front of mind when considering interior fit-out and design, particularly in office environments. It’s clear that emphasis on BREEAM and equivalent certifications is only set to grow in the commercial market, so choosing the right products first time is a great way to ensure properties are future proof.

How we help

Waverley plays an important role in ensuring our client’s solar shading and screening is optimised for sustainability throughout their building, whilst not compromising on functionality. Our strong partnerships with leading manufacturers of sustainable fabrics and systems have enabled us to provide sustainable solutions for every application.

For more information about the impact of solar shading on environmental credentials, and how you can ensure your building is fully optimised, reach out to our Specification Managers at experts@waverley.co.uk.

 

Find the original research by Knight Frank here.

About the Author

Bryn James

Marketing Manager

For PR and media enquiries email bryn@waverley.co.uk

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