Assets with superior environmental accreditation can attract a premium because they help their occupiers achieve their ESG goals.
But, said Andy Saull, research associate at Pi Labs, “we believe that in future a lot more focus will be on the ‘S’ in ESG. Buildings need to be environmentally friendly but also create great productivity and a satisfactory environment for their occupants.”
Talking to Real Asset Media’s Richard Betts, Saull said that as 90% of an average occupant’s costs is said to be the salary bill, making staff 1% more productive would produce a greater return than, say, cutting the utility bill by 100%.
Consequently, Saull says there should be an Airbnb-type system for offices as there is in the hospitality industry, particularly as there is evidence that more satisfactory buildings return higher rents.
Click on the video to watch the full interview.