Going green gains traction
Sydney Morning Herald
Saturday February 19, 2011
DEXUS Property Group's 1 Bligh Street will have a six-star green rating - the city's highest - when completed and will set the benchmark for other new developments, according to the group's chief executive, Victor Hoog Antink.Speaking at the announcement of the group's half-year result on Thursday, Mr Hoog Antink emphasised the property offered as low a footprint as possible in a large city."It is truly something to be marvelled at," he said.The fourth annual sustainability survey conducted by CoreNet Global and Jones Lang LaSalle says companies that occupy office space around the world consider sustainability a key factor in their space occupancy plans and half of corporate real estate (CRE) executives say they will pay extra for space in green buildings.The survey found: sustainability is a critical business issue today for 64 per cent of respondents and 92 per cent consider sustainability criteria in their location decisions; the number of respondents willing to pay more for green leased space jumped from 37 per cent in 2009 to 50 per cent in 2010; and 31 per cent of corporate executives ranked employee productivity and health as their top sustainability concern.Australian landlords are now allocating more funding to upgrading their older buildings to attract tenants. All state and federal government departments must lease only four-star-rated properties, which is also putting pressure on landlords to upgrade.The director of sustainability in Australia at Jones Lang LaSalle, Joel Quintal, said the sustainability survey results reflected an evolution in the industry."Five years ago, a CRE executive might have thought sustainability was a costly way to make the company look good to employees," he said."Two years ago, that same executive probably focused on energy management as a way to save money in the short run. Today, he or she may be pursuing green strategies that enhance employee productivity."Mr Quintal said the jump in the percentage of respondents saying they would be willing to pay extra for green leased space may also be a reflection of the more stable economic climate today than in the previous two years."An additional 23 per cent said they would pay more in rent if it were offset by lower energy costs, reinforcing the idea that green space has financial benefits," he said."Although a lot of energy management strategies pay for themselves the first year, many companies have exhausted those opportunities and want to go to the next level."By replacing lighting systems or putting in 'smart' systems, companies may see their investment pay off within three years."
© 2011 Sydney Morning Herald
