SUSTAINABILITY

The Green Initiative: 6 Reasons Why Sustainability is Shaping the Real Estate Landscape

PRIME Philippines Research & Advisory Group • May 29, 2020

More investors are recognizing that a green building’s capacity to attract and retain tenants is conducive to improve business performance in the long run. But more than just business performance, prioritization on human health and wellness is driving innovations within the development landscape. With the pandemic threatening the condition of workplaces, the adoption of green building systems has been gradually growing as it improves employees’ well-being and increases long-term impacts from the effects of climate change.

 

Increased comfort and well-being of employees

Green buildings can produce a positive impact to employees within the building or to simple passerbys by generating their own energy or increasing biodiversity. Based on a series of Harvard University studies, green buildings can boost employee productivity in terms of cognitive function by as much as 101% when ventilation is enhanced. 

 

Building longevity

Construction materials used in green properties are more durable compared to traditional materials, albeit more costly. In order to minimize waste, property developers make sure that every material used for the development is used to maximum effect and can withstand damage caused by calamities and wear-and-tear.

 

Cost-efficiency

Solar and wind energy, along with energy efficient equipment and machinery, can also, according to the production schedule, reduce long-term electrical costs, water consumption, and other operational costs. Though initial construction costs may be more expensive than traditional ones, lower operating and energy costs indicate that green buildings offer a long-term return on investment.

 

Value-adding investment

In 2016, Dodge Data & Analytics, a leading provider of analytics and software-based workflow integration solutions for construction industries, reported that building owners that manage green buildings - whether new or renovated - command a 7% increase in asset value over traditional buildings. In the Philippines, LEED, WELL, and BERDE-certified buildings can instigate higher rental fees and selling prices due to the cost of applying for these certifications, as well as the cost for managing the green building system of the development. 

 

Marketability Boost

Green buildings can make a company more marketable since an increasing number of people and organizations are becoming more conscious of the environment, yielding to increased market value and long term resilience. Through this, incorporating and highlighting buildings’ sustainability specifications in marketing strategies can strengthen building or developer reputation.

 

Diversification of investor portfolio

Investors and developers are increasingly looking to diversify their portfolios and exploring unconventional assets for returns. The increasing attention towards green developments is an ideal opportunity for investors and developers to enter the growing market and diversify their portfolio. Not only will developers and investors be immersed in green investment, but also be able to broaden the scope of their expertise.

 

Tags:
PRIME Philippines, real estate, green buildings, reasons why sustainability is shaping the real estate landscape, LEED, BERDE, WELL, sustainability
PRIME Radar logo

Get the latest real estate insights, events and news from our newsletter

Our Expertise

Whatever your real estate service needs may be, our expert team of dedicated professionals will deliver value beyond your expectations.

Find a Property

Browse our offered available properties. We have lots or spaces that suit your requirements.

Industry Insights

Secure your competitive edge with our insights spanning various industries and competencies.

Book a Consultation

Unsure about what you need? We can help.

Social Media

Talk to Us

For general inquiries:

inquiri[email protected]

For client concerns:

[email protected]

Recruitment and hiring concerns:

[email protected]

Press and public communications:

[email protected]

MANILA

Ground Floor, Pacific Century Tower #1472 - 1476, Quezon Avenue South Triangle, Quezon City, Philippines

DAVAO

Fourth Floor, Topaz Tower, Damosa I.T. Park, J.P. Laurel Avenue, Lanang, Davao City, Davao Del Sur, Philippines 8000

CEBU

Regus - Cebu, Park Centrale, 5th Floor, Park Centrale Building Jose Maria del Mar St, cor Abad St, Cebu City 6000

© 2013 - 2020 PRIME Philippines. All Rights Reserved.