BREEAM on sustainable building

BREEAM was first founded 26 years ago with the goal of bringing sustainable value to developments. It aims to encourage the use of natural resources to investors, designers, developers and construction teams.

Whilst the costs involved with building in line with BREEAM’s enhanced standards can prove higher than average, evidence shows that a sustainable development has increased financial returns for investors.

However, in order to see the full value of BREEAM, you need to look all stages of the development process – let us explain.

Higher value to investors

Research has found that office developers are willing to invest up to two per cent more for higher BREEAM rated buildings, in the knowledge that the savings on energy and water bills will recover the additional investment in just two – five years.

Reduced risk to investors and developers

The industry is only going one way in terms of the emphasis being put on sustainable buildings. As time goes on and the focus on climate change intensifies, stricter regulations are likely to be imposed upon developments. This means older buildings with lower BREEAM ratings could be forced to either invest heavily in improving their standards or face the risk of depreciation .

Increased returns for investors

A study published by the Royal Institution of Chartered Surveyors (RICs) found that “Green Buildings” achieved a 21% premium on transaction prices and an 18% premium on rents.

Sustainability is now being immediately associated with quality and attractiveness within the real estate industry.

Increased Value to Occupants

Prospective occupants of office space will look for offices that increase employee productivity and well-being. A productive and healthy workforce is one the makes the company money, a company that makes money attracts the best talent – and so it goes on.

It is said that “Green Buildings” do just this; the efficient energy and heating systems not only reduce operating costs, but they create an optimal working environment.

This then comes back to the point of increased returns for investors; companies searching for office space will see the office space as an opportunity for business growth – they will therefore be more willing to part with additional cash if they believe they can recover the costs through increase employee productivity.

Conclusion

Achieving BREEAM certification is becoming more and more important as time goes on. Whilst the initial capital outlay of BREEAM standards may prove high, the lifecycle savings of the building will quickly outweigh this outlay.

It is also highly likely that as time goes on, tighter regulations for sustainable developments will mean that many old office blocks will require significant investment to keep up. By getting ahead of the curve, you’re essentially bullet-proofing your development against further financial investment.

Over two million buildings have registered for assessment since BREEAM’s launch in 1990. As more people start to see the value that BREEAM can bring to a development this number is only going one way.

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