PROPERTY ASSET MANAGEMENT SUMMIT 2017: BREEAM accreditation is beginning to have an impact on the value of properties in the longer term.
“For a number of years we have been trying to find the holy grail of green value,” said Tatiana Bosteels, had of responsible property investment at Hermes.
“There is now very clear evidence from a number of investors it adds value in the medium to long term.”
Bosteel was speaking at the EG Property Asset Management Summit 2017 looking at the financial advantages of BREEAM ratings in real estate.
Previously, in the commercial property market, sustainable credentials have not added to property value – but that is now changing due to tenant demand, planning regulation, long-term management savings and as an easy to measure mark of quality.
“Commercial property’s purpose is to make money,” said Richard Taylor, partner at Workman.
“My clients are generally asset managers. While the organisations they work for have corporate social responsibility requirements, when they bring a building to market they are in a competition.
“BREEAM is a measurement that shows a quality building. Ultimately it is a demonstration of quality… If you apply it you are safeguarding against potential increases in energy performance I the future.”
Ben Sidebottom, director at Sustainable Assessments, said there are two elements that have led to it becoming so common in the marketplace: the desire to have something protecting the environment, but also as a technical measurement tool.
“You need a way to express the building you buy or use meets the motivations you have,” he said.
“The market is moving in terms that occupier satisfaction directly effects the bottom line,” said Taylor.
“While there are the harder commercial initial drivers, there is an appreciation if they want lease renewals, there is more emphasis on BREEAM.”
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