Be seen to be green, but will occupiers dig deep for eco friendly offices

Sustainability and "green development" has been the focus of many debates recently and was one of the main topics touched on at the EG offices summit hosted earlier today. The conference focussed largely on occupational demand and addressed the need to go back to basics when approaching the topic of sustainable development. Paul Edwards, head of sustainability at Hammerson, addressed the topic highlighting the confusion caused be having 188 rating tools available for assessing an offices "green rating". He went on to indicate the need for more in-depth research to be undertaken to gather information on more than just conceptual usage but actual usage, and how economical a building actually is for an occupier once built.

Green development does seem to be moving up the wish list when it comes to tenant demands with roughly 40% across the board willing to pay more for a green building, according to a survey undertaken by Savills. However it appears that when it comes to the crunch many will not follow through on their standing. A recent report by trade body CoreNet Global and consultant Jones Lang LaSalle showed that more companies were considering the environmental impact of their letting contracts but only a minority were prepared to actually shell out more cash to make a greener choice. This presents the prospect that the perception of being green is just as important as being green itself, something seen as not necessarily feasible in times when finance is tight.  

The survey suggested that companies were more focussed on their short term strategies which are easy to implement such as energy efficiency programmes and waste recycling.

Two-thirds of respondents described obtaining funds to implement sustainability strategies as a "difficult" or "extremely difficult" challenge, although nearly three-quarters said they would be willing to invest in refurbishing their owned assets to hit sustainability targets.

"The findings of this survey provide stronger evidence than ever that sustainability concerns are impacting on corporate real estate decision-making," said Julie Hirigoyen, lead director of Jones Lang LaSalle Sustainability Services.

"As this message filters through the markets, we may begin to see signs of a two-tier market emerging whereby buildings that do not meet certain sustainability standards incur higher rates of depreciation and obsolescence," she said.