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Certification becoming a must for real estate, says Axa

23rd February 2024

Sustainable building certifications are becoming an essential for occupiers, lenders and investors, investment manager Axa IM Alts says. 

Justin Curlow, global head of research & strategy, real assets, at AXA IM Alts, said: “Occupiers and investors alike have seen ESG, health and wellbeing considerations catapult themselves up the priority list for both space planning and investment decisions.”

He said it was becoming clear ESG-compliant assets let faster and at higher rents, but added: “What is less quantifiable but anecdotally clear is also the greater level of interest, and therefore liquidity, as more occupiers require certifications for buildings to be considered for occupation and both lenders and equity investors insist that either certifications are in place or capital expenditures under-written in order to consider investment.”

Curlow said upgrading existing stock and new development to cater to this change in occupier requirements “will provide a wave of investment opportunities” over the coming years. 

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