Cases
howdoesenvironmentalsustainabilitycreatevalue?
Greendustry is committed to improving workplaces through greening initiatives. The foundation wanted to know what this actually means for property owners and investors: does it lead to higher rents, lower vacancy rates, and a stronger competitive position? And how does that translate into value? A valid question in a sector that is used to relying on figures. Gut feeling is not an argument. Substantiation is.
The approach
We drew up a business case that goes beyond a qualitative case for going green. Our starting point was market developments and shifting tenant demand: what are tenants looking for today, and how does the quality of the area factor into this?
Based on this, we mapped out the effect of going green on lettability, rent trends and vacancy duration. We substantiated the findings with reference locations, ensuring that the indicative value impact is rooted in comparable real-world cases.
What it brought to Greendustry
The analysis highlights how greening impacts three interrelated performance indicators:
- Higher market rents on tenant turnover
- Shorter vacancy periods and better tenant retention
- Stronger positioning of the location
Together, these three factors translate into demonstrably positive value growth, provided that going green is implemented on a sufficient scale and in a coherent manner. A coherent area strategy has an impact. An isolated initiative has hardly any.
Our role
This is what Envalue stands for: translating the impact of area quality into property performance and value growth. Well-founded input for owners, developers and investors making strategic decisions. This case study was developed through collaboration between our Valuations and Sustainability teams.
