Green corporate real estate can prevent business shocks

Friday, February 19, 2010

The cost of powering corporate real estate could stay steady with energy efficiency improvements.

By Ashley Brunskill

Energy efficiency in corporate real estate can help to make sure that businesses do not face unexpected turbulence due to shifting utility bills, according to the Royal Institution of Chartered Surveyors (Rics).

The organisation has recently co-signed a letter addressed to the members of the European Council and other significant policy-setters.

"Energy efficiency could lessen future energy price volatility and thus prevent undue stress to EU businesses," Rics explains.

However, that is not the only benefit to be derived from the creation of greener corporate real estate portfolios.

Rics continues: "Energy efficiency investments can significantly improve health and standard of life through better air quality."

The organisation recently warned that the Carbon Reduction Commitment Energy Efficiency Scheme seems to have been based on misunderstandings about the relationship between tenants and landlords.

However, Rics added that the scheme as proposed did have the potential to work for larger companies with greater control over their premises, along with owner-occupiers.

Source: ask-re The Property People LLP