Sustainability a key priority for commercial real estate owners | 19 April 2012
Those managing a portfolio of commercial real estate should be making sustainability a key priority, according to comments from insurance expert Bill Hughes.
The managing director of property at Legal & General, Hughes explained on Ft.com why it is necessary for such investors to take into account the environmental impacts of their properties. However at present, they aren’t being forced to take a pro-active approach; but this is something they should do anyway, he said.
“Currently, it is necessary to show that the issue of sustainability features somewhere in your thinking, rather than necessarily being able to demonstrate a prescriptive approach,” he said.
“If you are a large real estate holder, sustainability in its widest sense is something you have to think about all the time, in terms of how you acquire, asset manage and dispose of investments. In future, it is inevitable that there will be significant negative issues if you hold property with poor energy performance characteristics.”
The Ft.com article went on to say that despite the recession seen over 2008/09, sustainability within property has managed to “flourish” quite significantly. It has become a key focus for landlords and now, commercial real estate owners need to take the same approach.
Although many new properties will be much more environmentally-friendly, for investors, it is making their existing commercial properties more efficient that will be the main challenge, it added. However according to real estate specialist Paul Brown (cited by Dtz.com), taking pro-active steps now to improve efficiency could reduce future costs and “help attract or retain” commercial tenants.
Written by Deborah Bates on behalf of Qube Global Software
While posted by Qube Global Software all views expressed are not necessarily those of the company. All facts are verified where possible directly by the author.
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