Businesses Willing To Pay Premium for Green Premises (31-Oct-07)
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Full story: Businesses Willing To Pay Premium for Green Premises (31-Oct-07)
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European survey shows most companies happy to pay extra for sustainable real estate
The majority of European firms are willing to pay a significant premium for properties with strong green credentials, according to a global survey of real estate professionals released this week.
The interim results from a survey of 500 European execs from real estate service giant Jones Lang LaSalle and professional body CoreNet Global found that almost two thirds are prepared to pay a premium for greener real estate.
About half of respondents indicated they would be prepared to pay a one to five per cent premium for green real estate, while another 12 per cent indicated a premium up to 10 per cent would be acceptable.
The report, entitled Sustainability Perceptions and Trends in the Corporate Real Estate Industry, concluded that the results revealed "a shift in corporate attitudes towards sustainability" and highlights the growing value businesses place on green credentials.
However, despite companies' willingness to dig deep for green properties, the survey revealed that availability of sustainable real estate is seen as "patchy " with almost half of respondents complaining about limited availability of environmentally sustainable buildings.
The shortage was blamed on a lack of action from a number of key groups within the real estate and construction sectors, with only seven per cent of respondents crediting landlords and owners with being "proactive" when it came to sustainability issues.
In contrast, architects and designers were found to be the most proactively green, scoring 51 per cent and 44 per cent approval respectively.
The report said that the pent-up demand for green properties among real estate professionals highlights a huge commercial opportunity for environmentally conscious real estate providers.
Linda DeMars of CoreNet Global added that the demand for green buildings in Europe was part of a global trend that is gathering momentum.
"While we must stress that these are interim findings and the survey is ongoing, it is interesting to note that the findings so far are homogenous with those from our Asian, North American and Australian summits," she observed.
The finalised global report is expected to be released in the next two weeks, she added.
- Source: Business Green
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