The Leader - July/August 2008 - (Page 44)

eM ea ’s B u Ild I Ng e Ne rg y ratI Ng : re ady to take sto ck? Glazing U Value Wall U Value n Air permeability for each building These are concerned with the fabric of the building and are relatively complex to implement: however, our analysis indicates that making some small changes as well as larger ones (such as installing energy metering and alarms) may offer a relatively easy way to improve the sustainable nature of a building. Some professional bodies such as UKGBC, RICS and BPF (including their work on LES-Ter), are undertaking a more formal and structured response to sustainability issues. These property professional bodies advocate that the industry should work together to create and share best practice and drive the industry response forward, rather than wait to be led. The RICS in particular has launched a European Sustainable Energy Campaign and in a recent press release stated that it has become a media ally with the European Commission “in its challenge to encourage consumers, business, industry and governments to opt for energy efficiency.” However, most of the current literature in relation to the BER fails to compare progress or otherwise in terms of implementation, particularly on a panEuropean basis, a gap this paper seeks to address. We invited the country survey participants to assess the level of BER awareness among selected stakeholder groups, including investors, developers and occupiers within their own countries and form a research house view. Occupiers. A recent global survey of corporate occupiers by Jones Lang LaSalle and the CoreNet Global n n Summits has discovered that many tenants would be willing to pay higher rental costs to occupy a ‘green’ building with a higher level of energy efficiency. This is a highly favorable indicator for sustainable property going forward that we believe should help encourage developers to accommodate any potential additional development costs resulting from energy efficient design initiatives. Many large international occupiers now have a sustainability program embedded in their overall corporate strategy and it can be a key factor corporate occupiers adhere to when choosing an office location. However, among the stakeholder groups assessed for our house view, occupiers were regarded as ‘least aware of the BER.’ We expect that the exception to this finding will be those occupiers who are actively managing owner-occupied property portfolios. The above summations are perhaps not surprising because, as of January 2008, the main focal point of the BER is on the asset rating of the building, and not on the actual energy performance of the building when occupied. Accordingly, as occupational ratings move up the agenda, we anticipate a greater level of occupier knowledge and focus. Much of the occupational market is currently in its infancy regarding the use of sustainable buildings, although in the medium term we predict that occupiers will increasingly want to occupy such buildings and that sustainability will move up the location criterion. Developers. The survey respondents thought that among the stakeholder groups, developers are the ‘most aware’ of the impending legislation, no doubt due to the imminent requirement to provide authenticated BER certification for new buildings. On the whole, the general message from many developers in relation to the BER rating is that they are willing to fund more energy efficient buildings if it can be shown there is market demand and that tenants would be willing to pay a higher rent for such buildings. Findings from our research indicate that within the development process the responsibility for adhering to and meeting energy efficient guidelines is often passed by the developers onto the architect to be dealt with at the design stage. However, it is clear that a core of developers has adopted a very proactive hands-on approach in relation to building energy efficient property and is arguably gaining market advantage as a result. Investors. For many investors the whole issue of energy efficiency rating is a question for later, when the directive has been fully implemented. This viewpoint is based on the argument that there is no real evidence that a building with a low BER will achieve a lower value than one with a higher BER. However, many industry spokespeople have suggested that a value differential will happen and that property investors need to review the rate of their portfolio obsolescence accordingly. It is thought that the real impact of having a poor energy efficient building will be only be realized when it comes to the transfer of the asset through sale or leasing. Some large property investors clearly understand the benefits of retrofitting or implementing sustainable practices. Our research shows that there are two distinct schools of investor developers operating in the property market: while the le ade r 44 J u ly / a u g u s t

Table of Contents Feed for the Digital Edition of The Leader - July/August 2008

The Leader - July/August 2008 Leadership Contents Message from the CEO Real Estate in the News Organizational Design Accommodating Growth Responding to the Challenge EMEA's Building Energy Rating TVA's Shortcut to Success ANZ Banking Group’s Jane Hamilton Tractus Asia’s Dennis Messeroll Arizona’s Greg Weiner Workplace Design Workplace Directory The Texas Report Industry Tracker Discovery Forum Findings Career Development Congratulations to 2008 Corenet Global Award Winners! Young Leader Economic Development in the News Connect with Corenet Global A Look Ahead

The Leader - July/August 2008

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