The sustainability of commercial property is set to become an increasingly important factor that investors will need to consider when they are looking at the mid to long-term returns a particular asset can offer. This is according to the Royal Institution of Chartered Surveyors (RICS) in Oceania, which is hosting an event in Sydney to highlight the impact of sustainability on the sector.
A bias towards sustainable development - coupled with new legislation relating to the energy efficiency of a range of buildings - means that this is a topic that real estate investors the world over may be interested in. Managing director of Rics Asia Pacific Kaye Herald commented: "There has been a quantum leap in what has occurred in the commercial market over the last two to three years relating to sustainability." She noted that tenants are "becoming far more savvy" when seeking out premises with green credentials.
In the UK, the government is currently trying to reform the planning system and it wants to see local councils take a stance in favour of sustainable development in a bid to encourage greater investment in environmentally-friendly residential and commercial schemes.
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