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European office buildings with sustainability certifications command 6% rental premium
Research - NOVEMBER 29, 2022

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European office buildings with sustainability certifications command 6% rental premium

by Andrea Zander

Office buildings that meet environmental, social and governance (ESG) standards command higher average rents regardless of the year they are built, according to a new European analysis from CBRE.

The analysis reveals that buildings, both new and existing, that are certified to meet high environmental standards command higher office rents compared with non-certified stock. This finding is very supportive of the retrofitting challenge outlined by the European Green Deal, which aims to make Europe climate neutral by 2050.

CBRE found that sustainable buildings’ rental premium is driven by a reduction in negative environmental impact; lower operational and maintenance costs; greater appeal to tenants concerned with corporate reputation and sustainability targets; and increased occupant comfort, well-being and productivity. Government regulation, which is increasingly forcing occupiers to report on nonfinancial performance such as ESG metrics, is accelerating this trend.

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