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Demand for sustainable commercial property declines

The development of environmentally friendly new buildings will slow because of the credit crunch - but will return in the long term, according to a North East property consultancy.

David Jackson, Director of Agency for Teesside at Sanderson Weatherall, said properties that contained green facilities including rain water harvesting, low energy offices and showers to encourage people to cycle or walk to work were too expensive for many businesses to consider at the moment.

He said: “The environmental friendliness of new premises is probably the last thing on the minds of directors looking to move at the moment - and who can blame them in these tough economic times.

“However I don’t think it’s a permanent step down - once the economy picks up, which it will do in time, the strong environmental focus that has been a factor in the commercial property market for a number of years will return - probably even stronger than ever.”

Mr Jackson said even now some firms and agencies who regarded a strong environmental positioning as important for their business were keen to be seen working in green premises.

“Some clients - One NorthEast, for example - still place a very high importance on property with Very Good or Excellent Building Research Establishment Environmental Assessment Method (BREEAM) ratings, and where they lead others will follow,” he said. He added that the policy of government procurement would go green every time and the costs associated with incorporating sustainability into new build projects would fall to levels within the scope of realistic payback periods.

“Sustainability might not be the catchword it once was, but it will regain its prominence. It is entrenched on the public agenda, forward-thinking procurement policy has been built around it and key sectors of the commercial property market value it.”

This was posted in Bdaily's Members' News section by Ruth Mitchell .