Spiralling energy costs over the next 10 years will make operating costs a much more significant factor in tenants’ choice of property, says research carried out by architects Gensler.

In its report, Faulty Towers: Is the British Office Sustainable, 73% of the property professionals asked said rising energy costs will become a crucial factor in a tenant’s choice, while 69% believe it will force developers to commission more energy efficient buildings.

However, while developers agree that the operating cost of a building in use is a primary consideration for tenants when procuring commercial property, just a third believe that such costs are a primary consideration for developers when planning a commercial property.

Other research by the Confederation of British Industry and property adviser GVA has found that 75% of firms are willing to pay more in the form of rent and higher service charges for buildings that are environmentally friendly and energy efficient. Specifically, 64% said that energy efficiency would be very important when looking for a property in the next five years.

There was a word of caution, though: 58% of respondents said they would pay only marginally more and none said they would pay significantly more to achieve an environmentally friendly building.

However, 91% of respondents to the survey said that they were concerned about the the possibility of rising energy prices and the knock-on effect this would have on running costs.

Other findings from the Gensler report

  • 94% of developers and 93% of occupants believe that investing in efficient design and construction will save operating costs

  • On average, businesses are willing to pay 10% more in rent for buildings that are energy efficient

  • 39% of property developers believe government plans to regulate the energy performance of buildings will make them more likely to procure energy efficient buildings and 30% say that regulations will make them more likely to overhaul and upgrade their current portfolio

  • 75% of developers believe that poor energy efficiency will have a negative impact on the value and transferability of property.

Source

Building Sustainable Design