Report
Is Sustainability Certification in Real Estate Worth it?
Sustainable certified assets are becoming an increasingly attractive option for investors and occupiers.
December 5, 2023 5 Minute Read
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- The proportion of certified building stock is increasing. Owners and investors continue to require sustainable certifications for their office assets. In the markets analysed, the share of certified stands at 22% in the first half of 2023, up from 15% in 2019.
- Certified office occupancy has increased from 31% in 2019 to 34% in H1 2023, confirming the upward trend and reinforcing that sustainability is a key factor for occupiers in building selection. For mature office markets, the certification process for new and renovated buildings in locations with higher demand will take time, which will affect the availability of certified stock.
- A 7% rental premium is available for certified buildings. The rental premium exists for certified office buildings, regardless of the year of construction. Therefore, certifying both new and existing buildings guarantees higher office rents compared to non-certified stock.
- Assets with lower EPC ratings generate lower rents than assets with better ratings. Property owners who invest early in the modernisation of their portfolio will benefit the most in the long term.
Find out more about the relationship between sustainability certifications and rents in our full report.