We are committed to working with our clients to help them achieve their sustainability objectives as efficiently as possible. Our dedicated team focus on working with landlord, tenants, investors and developers to update their documents and get ahead of the curve on hot topics such as green clauses.
Pressure for sustainability within Real Estate is arriving from multiple directions. Increasingly, consumers care about the sustainable credentials of their local restaurant, their clothing retailer, even their local bar. From the other end of the spectrum, investors and shareholders can see both that a resilient long term investment should take into account the climate emergency and that businesses with impressive ESG credentials are often outperforming those without. These pressures are increasingly driven by fund managers and general partners who see the intangible connection between sustainability and financial viability.
Landlords may find that they are unable to charge the same amount in rent for non-green properties in their portfolios and that these also take longer to re-let or refinance. Some are also finding that these assets depreciate more quickly and carry higher risks than their green counterparts, making non-green properties less desirable to investors.
Both landlords and tenants need to work together collaboratively as each sees the clear advantages to sustainable buildings:
For landlords this is a reduction in their carbon emissions, reductions in power and water costs, possibly higher rents and higher desirability; especially important when staring down the barrel of a possible recession.
For tenants, it's a similar reduction in utility costs and the ability to deliver on corporate sustainability objectives. As well as this, there's the clear connection between green buildings and employee health and wellbeing, productivity and staff retention.