Sustainability credentials to boost your property marketing
Demand for sustainable commercial property is on the rise and organisations are willing to pay more for it. How do you develop and demonstrate the sustainability credentials of your asset and make it more marketable?
In the UK, there has been a 60% growth in demand for green buildings. This “demand for the most sustainable buildings has outpaced supply”. Not only that but properties with demonstrable sustainable features will have a higher rental and capital value. In the London market, JLL has reported these figures to be 20% and 11.6% respectively.
“Demand for the most sustainable buildings has outpaced supply.”
Occupiers are seeking to meet their own net zero carbon and ESG targets whilst reducing their operating costs and energy costs. Investors see green buildings as a less risky investment as the government tightens up on regulations for non-sustainable buildings. For example, from April 2027 all commercial properties will be required to meet a minimum Energy Performance Certificate (EPC) rating of C. This is a huge undertaking for owners of existing stock that don’t meet this rating. Without a programme of decarbonisation, landlords risk having stranded assets that are unlettable and unsellable.
Sustainable marketing credentials
Both the British Council for Offices (BCO) and UK Green Building Council (UKGBC) offer guidance to the property sector on developing a more sustainable built environment. For marketing teams looking to focus on sustainability, here are some features to pull-out and accreditations to give your marketing a boost.
Energy efficiency and operations
EPC: It’s a mandatory requirement to have a rating that shows the energy efficiency of your property on a scale of A (most efficient) through to G (least efficient). It is often overlooked when marketing a property but a higher rating is appealing to eco-conscious occupiers and can often mean lower energy bills.
NABERS: This popular Australian rating system has been adopted in the UK. It assesses the operational energy efficiency of commercial buildings. A high NABERS rating can lead to lower energy bills for tenants, reduced carbon emissions, and increased rental competitiveness.
Renewable energy sources: Investing in solar panels, heat pumps, or other renewable energy sources can significantly improve your property's green credentials and make it stand out to businesses looking for sustainable options.
Waste management: Do you work with a recycling company that offers zero waste to landfill or if not a significantly high proportion of waste is recycled? Can you adopt a circular economy approach and make use of or sell, even donate, preloved/reclaimed materials, furniture or equipment. This can make you stand out from the crowd when it comes to the competition who can offer similar accreditations.
Water: Water efficiency labels demonstrate low water consumption whilst any greywater reuse systems you have can showcase resource efficiency and water conservation efforts. Give consideration to how the building is cleaned, water that contains chemical cleaning products can pollute our waterways. If your cleaning company is using electrolysed water instead, which is safe for the environment, it’s another tick in the box.
Sustainable travel: Many businesses are keen to support a sustainable commute for their employees which in turn helps reduce the carbon footprint of their own operations. Properties that feature cycling facilities including storage, lockers and drying facilities will be more desirable. Take-up of electric vehicles (EVs) is increasing and so too will demand for charging stations in properties. Are you taking a radical approach and opting for a car free site?
Operational net zero carbon emissions: These are emissions associated with the energy used to operate a building, including heating, cooling, hot water generation and powering lighting, lifts and business operations. By optimising the building's efficiency, sourcing renewable energy and offsetting any remaining emissions, you can claim operational net zero carbon emissions. Note this is not a Net Zero Carbon Building which includes embodied carbon as well as operational, the UKGBC is publishing a standard for this in 2024.
Building materials and construction
BREEAM: This internationally recognised certification also applies to commercial buildings, assessing their sustainability performance across various categories including water, energy, transport, waste, pollution, land use and ecology, and health and wellbeing. A high BREEAM rating of BREEAM Outstanding or Excellent attracts tenants seeking green leases and can command higher rental premiums.
Green Guide to Specification: The Green Guide to Specification rates the environmental impact of building materials. Choosing materials with low environmental impact can contribute to BREEAM credits and improve your property's overall sustainability profile.
Health and wellbeing
WELL Building Standard: This certification focuses on creating healthy and productive work environments for occupants. Features like enhanced air quality, natural light, and access to green spaces can be highly attractive to businesses seeking to improve employee well-being and attract top talent.
Fitwel: This US-based rating system assesses buildings based on their impact on occupant health and wellbeing. It considers factors like access to healthy food options, physical activity opportunities, and mental health support, which can be valuable for tenants in health-conscious industries.
Environment and community
Biodiversity Net Gain (BNG): BNG is a new mandatory approach to development that aims to leave the natural environment in a measurably better state than it was before the development took place. It actively seeks to enhance and create new habitats, ensuring that overall biodiversity is increased, not just maintained. Developers are now required to deliver a minimum 10% Biodiversity Net Gain. Developers can engage with their local nature recovery strategy to select the species that will have the greatest impact in their local area.
Building with Nature Standard: This standard recognises developments that contribute positively to biodiversity and ecosystems. It has been predominantly used in the development of residential and public spaces/buildings, however commercial developers with the land available could also benefit from this. Demonstrating your commitment to nature can be attractive to occupiers who value green spaces and environmental responsibility.
Social impact: Social value requirements are associated with public sector procurement via the Public Services Act 2013. It requires them to consider how their procurement activity, including property development, can improve the economic, social and environmental wellbeing of the area. However, many private sector businesses are embracing this through their ESG strategies and online tools can help with measuring and demonstrating the value created in activities undertaken.
Additional Tips
Focus on tenant retention and attraction: When marketing your sustainable features, tailor the message to the specific needs and priorities of businesses looking for office space.
Quantify the benefits: Highlight the quantifiable benefits of your sustainability efforts, such as reduced energy bills, improved employee productivity, or higher rental income.
Collaborate with partners: Consider partnering with green energy providers, waste management companies, or other sustainability-focused organisations to enhance your property's green credentials.
By strategically choosing and highlighting your sustainability credentials, you can set your commercial property apart from the competition, attract high-quality tenants, and contribute to a more sustainable future. Remember, the best approach will depend on your specific location, building type, and target tenant audience, so do your research and tailor your strategy accordingly.
