Green building is an economic necessity says Nedbank Executive
Nedbank Corporate Property Finance regional executive, Ken Reynolds says there are significant advantages to develop new buildings or redevelop existing buildings along green principles.Reynolds anticipates that green properties are likely to experience lower vacancy rates in the future and potentially levy higher rentals as buildings that are designed to accommodate energy efficiency and carry unique features that focus on environmental sustainability, are likely to become more attractive to tenants – across commercial, retail and residential property.
Reynolds says that there are also advantages for developers of green buildings from a financing perspective.
The higher rentals and increased capital values means developers and owners can often attain a better credit rating and increased access to borrowings.
GBCSA says cost saving payback is between three to five years –
Another driver of retrofitting initiatives is tenant demand. Groves says tenants in non-green buildings are demanding green space to demonstrate their commitment to sustainability and to accrue the benefits that green spaces offer.
Our green buildings are showing signs of enhanced returns and better fundamentals. The challenge for our industry lies in future proofing the existing stock through sustainable and greening initiatives
– Investment Property Databank (IPD) executive director Stan Garrun