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Jan 30 2008 by Graeme King, The Journal

Rising demand for sustainable offices that 'pay for themselves'

A gradual shift towards environmentally friendly buildings is being driven by economics, as well as a desire to “do the right thing” says Ian Parker.

INCREASINGLY stringent legislation will be a key driver towards forcing office buildings to be more sustainable, combined with increasing commitments towards corporate social responsibility (CSR) by businesses.

Demand among occupiers for more sustainable offices is increasing. Surveys conducted by GVA Grimley show that office occupiers recognise the benefits of such buildings and would even be prepared to pay more for them.

The Environmental Performance of Buildings Directive will be key in driving further demand for energy efficiency, particularly through the introduction in 2008 of Energy Performance Certificates.

The Building Research Establishment’s Environment Assessment Method (BREEAM) is the most efficient benchmark of sustainability of office buildings that exists in the UK.

Evidence is emerging that the asset performance of more sustainable offices is stronger than that of offices built to minimum standards.

Such buildings should carry a lower risk premium and experience reduced obsolescence, translating into higher rents, stronger rental growth and higher capital values.

The spotlight is increasingly on the property industry to become more energy efficient and sustainable.

Sustainable offices are not just good for the environment – legislative pressures combined with increasing awareness of CSR in business practices are rapidly making an economic case for sustainable offices beyond simply a moral one.

Sustainable office development and refurbishment makes financial sense for occupiers, developers and investors alike.

My client Highbridge Business Park, the developer of Cobalt Business Park in North Tyneside, is adopting a positive approach to the sustainability issues there.

Highbridge have commissioned Operon Design to assess the implications of achieving “Excellent” BREEAM rating on all future office developments.

Some of the key features of the building design under review include the built form and orientation, fabric specification, natural/mixed mode ventilation and external/internal shading.

They have also invested money towards improving public transport links to Cobalt Park.

It is inevitable that BREEAM ratings and the introduction of Energy Performance Certificates will significantly influence office design and quality/environmental standards.