Occupiers now want more ‘green’ but at what cost?

The pandemic has changed perspectives on green buildings and for many returning to offices once the lockdowns are over, workspace with a green badge will no longer be a mere “nice-to-have”.

Europa Capital director and head of research and strategy Vanessa Muscarà explained to Real Asset Media’s Richard Betts that before the current health crisis occupying a building with green certification was largely symbolic, enabling tenants and their staff to feel that they were contributing to a wider benefit.

But as people start to see beyond the pandemic, green certification has a more functional benefit – people feel safer if their building has the latest air quality control systems.

The benefits can be tangible too. Muscarà said that there is evidence that tenants occupying green certified buildings achieve 26% higher cognitive scores.

However, there are different levels of certification that come at different levels of cost, both to the building owner and in the form of the rent that the tenant will have to pay.

“The moral of the story is: know your occupier profile and apply a level of green certification in line with the local submarket rental price point,” Muscarà said.

Click on the video above to watch the full interview or listen to the podcast below.