Drivers for Sustainability in Commercial Real Estate

Enhance Building Long Term Value
Future-proofing buildings involves making the building's design flexible, to allow for future adaptation to changing needs. This adds value to the building, maintains useability and prolongs the building's lifespan. Trends show green buildings industry continues to grow by 60% in 2009.

Legislation
Sustainability is currently being integrated into state and local legislation. Local governments increasingly mandate green buildings for themselves and the private sector. Obtaining planning permission will increasingly require implementation of sustainable design, construction and managment practices.

Corporate and Social Responsibility
Sustainable buildings can enhance an organization's corporate reputation and community profile. It demonstrates concern about the environment, social impact, the health of workers and economic viability. Reducing the total ecological footprint can be a social driver for both owners and tenants to construct and occupy green commercial buildings.

Tenant Demand
Various government entities are leading by example, applying sustainability standards to office accommodation they occupy. There is also increasing demand from tenants more broadly for green leases, more efficient buildings and better indoor environment.

Climate Change 
Sustainable buildings improves the ability to prepare for future climate change issues, and will redcue the impact of increases in utility costs such as energy, water and waste disposal.

International Pressure
There is a growing pressure from the international community for each country. Many countries are actively implementing large-scale sustainability programs to reduce both their greenhouse gas emissions and their impact on the environment. European green building technologies are becoming more widely adopted in the U.S. and Canada. 

Source: Harbor Stone Advisors Commercial Group