London office buildings that achieve the highest standards in sustainability can achieve up to a 12.3 percent premium in rents, according to a new analysis from global property adviser Knight Frank.
The study for the first time quantifies how rental performance is impacted by BREEAM-certification, the leading global sustainability assessment method for buildings, which is adopted across more than 3,000 buildings in London.
According to the analysis, a BREEAM “Very Good” rating, which recognizes advanced good practice on issues including energy performance and health and well-being, results in a 3.7 percent rental premium, on average.
BREAAM “Excellent” results in a 4.7 percent rental premium, while an “Outstanding” rating —- which is achieved by less than 1 percent of assessed buildings and recognizes the most innovative workplaces — results in a significant 12.3 percent premium.
The analysis has been undertaken using rental data from firs
