It’s no secret that there’s been a great deal of buzz concerning environmental, social and governance (ESG) factors within the commercial real estate industry. A recent survey released by CBRE entitled “Strengthening Values through ESG” added metrics to the buzz. Specifically, “the survey reveals how companies’ intensified focus on environmental, social and governance goals is driving their real estate decisions and strategies,” according to the press release announcing results of the survey.
The survey obtained results from CRE investors and occupiers in major categories of commercial real estate in the U.S., Asia Pacific, the U.K. and Europe.
Here are some of the survey’s takeaways:
The Importance of Environmental Features
Respondents said they would be willing to pay a premium for spaces with environmental features like on-site renewable energy generation or smart technology tools. Specifically, 84% of respondents said they look for energy-reducing features. Almost half indicated they would either want a discount or walk away from a deal if a building didn’t have these components.
Green-building certification was also a big deal to survey participants. Forty-five percent of respondents said they would pay a premium to lease or buy a certified building. Meanwhile, one-third of participants said they would either seek a discount from or outright reject a building that lacked certification.
Need for Social Features
Eighty-two percent of respondents wanted their buildings to have convenient access to public transportation. This is a social feature that ties in with easier commutes; commutes mean better employee well-being.
Companies are want buildings to support their employees’ mental and physical health. This includes a higher interest in buildings that accessible by bike or foot. Also important to respondents are buildings with inclusive designs to meet employee needs.
Organizational Ethics and Building Resilience
Sixty-three percent of respondents said that company ethics and values are the main driver behind their ESG priorities. Additionally, 75% of those surveyed mention a building’s resilience to growing climate change hazards as an important part of the real estate decision.
The post Survey: ESG’s Impact on Building Values and Transactions appeared first on Connect CRE.
It’s no secret that there’s been a great deal of buzz concerning environmental, social and governance (ESG) factors within the commercial real estate industry. A recent survey released by CBRE entitled “Strengthening Values through ESG” added metrics to the buzz. Specifically, “the survey reveals how companies’ intensified focus on environmental, social and governance goals is …
The post Survey: ESG’s Impact on Building Values and Transactions appeared first on Connect CRE.
Robert Khodadadian has long had a simple philosophy about selling real estate. There are approximately a million buildings in the city, and the broker that gets to sell any one among the multitude that will hit the auctioning block at a given moment is, sometimes, simply the person who happens to pitch their services to the right seller.
robert khodadadian, skyline properties, commercial real estate, off market real estate, daniel shirazi, real estate investment, new york real estate,