`Green' Buildings May Pay Dividends
Byline: By Nick Atkinson
Demand from tenants for energy-efficient buildings is at a low ebb. But with energy prices on the rise and EU legislation due to come into force this year DTZ's Nick Atkinson predicts that a building's value will be affected by its "green" attributes.
Developers in the North-East with a strong corporate social responsibility policy will drive demand for low energy-use buildings in the UK industrial sector.
The Green Sheds Report, by DTZ's research department, looks at the impact of the forthcoming European Union legislation on the UK industrial and logistics property sector.
It highlights how developers will make the first move as the forthcoming legislation on energy efficiency is likely to have little immediate impact on the sector as a whole. Initial demand for "green sheds" is likely to come from a small number of occupiers at the top end of the market. Despite the Government's ambitious target to reduce greenhouse gas emissions by 20% by 2012, a lack of financial incentives ( such as stamp duty or tax breaks, or specific penalties for non-compliance ( will mean that the real impact of the legislation will be minimal across the rest of the market.
However, as corporate environmental policies become more widespread, demand for energy-efficient buildings will extend to the wider market.
The introduction of a certification system, which will allow comparisons to be made between different buildings according to their energy profile, is likely to become a measure of a company's commitment to its social and environmental responsibilities. …