Tenants will pay more for green office space

Industry comment

Published: 25 May

Author: Alan O'Brien

Type: Industry comment

Year: 2010

Although demand for office space across the UK has generally started to increase this year, serviced offices and landlords of traditional office space are more likely to increase demand faster if they can increase their energy efficiency, according to reports that seem to indicate that prospective tenants are happy to pay more for green office space.

This information comes from energy efficiency experts, Sabien Technology. Their CEO, Alan O’Brien, said:

This is not a new phenomenon; the trend for offices with a higher energy rating attracting better rental prices than those with lower energy ratings has long been the case in the United Stated and is now starting to appear more commonplace in the UK.

Those looking for commercial office space are starting to request that their office have BREEAM ratings, the standard ratings for environmental performance, of ‘Outstanding’ or ‘Excellent’.

~ by officespacenews on May 10, 2010.

Posted in Office Space News to read the full article please click here

“By going green and future proofing buildings, owners can enhance yields and improve occupancy rates. Over the life cycle of a green building the savings can also offset a higher initial outlay and result in low, or even negative, carbon reduction costs. Tenants are attracted to green buildings as they see sustainability as an important product differentiator in the marketplace. Locating their businesses in energy efficient premises reflects well on the image of their firm and creates goodwill among clients and customers.”