Green Offices a Promising New Market

Green offices are set to emerge as a promising new commercial construction market, specifically in Central London when companies start asking staff to return to work.

A new report from JLL, The Impact of Sustainability on Value shows that ‘sustainable office buildings’ which help firms meet their carbon targets are proving to be attractive to investors thanks to their higher rents and strong leasing ability. The report also suggests that a new wave of green office construction and refurbishment will be needed in order to meet the demand for at least 8 million square feet of highly sustainable, net zero carbon space that is needed in Central London over the next 10 years.

Research conducted by JLL found that Grade A office buildings in Central London with a BREEAM rating of ‘very good or higher’ achieved higher rents. Glenigan construction data also showed that developer in London are already looking to meet higher levels of sustainability when they are building and refurbishing office projects in the capital.

An example of this is Land Securities’ £13.1 million Nova Place office and retail scheme in Victoria, which has been designed to achieve a BREEAM Excellent rating. Work on this scheme, which includes a 1,400 square metre library is due to start this summer, and, continue for 14 months.

Another major office refurbishment and extension scheme in the City, the £40 million Tower Bride Court Development is also designed to achieve a BREEAM Excellent rating, with work on this scheme due to start this summer and continue for 23 months.

Glenigan have also suggested that contractors who specialise sustainable building works would also find opportunities within the education sector. The £7 million extension to the City University in Islington is also designed to receive a BREEAM Outstanding rating, with work on this to begin in Summer 2020.

Commercial property is also something that high levels of sustainability is featuring in, with the hotel trade jumping on this. The new CitizenM Hotel in Victoria, London has been designed to achieve a BREEAM Outstanding rating. However, this is the most demanding performance category for sustainability, met by just 1% of buildings. Work on this project is due to start this spring (2020) and continue for 12 months.

Sophie Walker, UK Head of Sustainability at JLL said: “Clearly the urgency to build and redevelop these offices in Central London to support corporate environmental and people goals is only speeding up. The first developers to undertake the task will reap the rewards of high levels of demand and the intrinsic higher performance of their product.”

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