Office buildings that have sustainability certifications and meet the Environmental, Social & Governance standards (ESG) perform better than non-certified properties. Latest research from the CBRE shows that certified buildings have significant higher rental levels and lower vacancy rates. The rental income for certified office buildings are 21% higher compared to non-certified office buildings. It is expected that this trend will only increase in the next years.
CBRE examined the relationship between sustainability certifications and the income generated by office building rentals in 15 European cities. The results show that, on average, rental income from certified office buildings was 21% higher compared to non-certified office buildings over a five-year period.
Amsterdam, where our headquarters is positioned*, is one of the outliers with an average 27% higher rent for certified buildings.
What explains the rise of office buildings that meet the ESG standards?
The rise of buildings that meet the ESG standards, is mostly driven by the perks that are associated with sustainable buildings. For example the enhanced well-being, comfort and productivity of the occupants, the positive corporate reputation effects and the lower operating costs.
The study further shows that companies seem to be taking certifications into account to a greater extent. Despite the fact that location is still the most dominant factor, more and more companies are giving sustainability aspects a higher priority in their decision-making. This trend is not only affecting the number of certified office buildings, but there now also seems to be clear international evidence that offices with sustainability certification operate better and, in the long run, should have a value-boosting effect.
This is well aligned witch the new sustainability reporting rules from the European council (the CSRD). Indicating that Europe is takings steps into a more sustainable economy by making sustainability more transparant and resilient.
This also aligns well with the trend that offices are increasingly being transformed into modern green offices. Not only the exterior of office buildings is increasingly more sustainable: the interior is also becoming increasingly important, both for the environment and the people who work in the office. Fair trade office consumables, green lush office forests or our smart water dispenser: these are just some examples of making offices more sustainable.
In conclusion
Sustainability is on the rise. We see evidence of offices being converted into a more sustainable environment for both people and planet. This is backed by clear international evidence and de trend to make offices more sustainable. Hence, it is expected that this trend will only increase in the near future.
Want to be the first to receive important updates and stay tuned? Subscribe to our newsletter.
