The end of the green premium?
A perennial question for real estate investors is whether the cost of the sustainability measures they take in their portfolio leads to increased rents and therefore values.
However, the industry is increasingly leaning towards the view that the search for a ‘green premium’ is a simplistic way to look at sustainability in real estate. Increasingly, good sustainability practice is indivisible from best practice in other areas. No real estate investor would disagree that the best buildings achieve the best rents, however it is much harder to say how much of this performance is due to sustainability initiatives.