What will sustainable buildings look like in 2024?

In today’s challenging economic landscape, it's understandable that investment in real estate may be down, particularly as the office sector navigates dynamic shifts in demand due to the impact of hybrid work on lease renewals. However, as we look to build more ‘green’ buildings, should these factors deter us from taking decisive action towards decarbonising buildings?

Bryan Thomson, Managing Director Harcourts New Zealand said, "Building owners are not only facing the rising costs of climate and extreme weather risk but also grappling with tightening policies and regulations, evolving market expectations, and wider societal pressure. This presents significant implications for the value of their assets and the income they generate."

Increasingly, companies are recognising the importance of leasing spaces that align with their low carbon goals and meet employees’ rising expectations. This is evident in the premiums they are willing to pay for 'green certified' office spaces. This is something the NAI Harcourts teams from across New Zealand are reporting on in numbers.

Bryan Thomson adds, "While green certifications have been a differentiator in the past, they are rapidly becoming a requirement. As momentum for sustainability grows, tenants will increasingly seek environmental performance indicators. Our teams are reporting that the demand for sustainable office buildings is leading the pack in the major centres/office markets in New Zealand.

The mounting costs of climate risk cannot be ignored. Climatefuelled extreme weather events are imposing significant financial burdens on businesses and townships. Understanding these risks and investing in sustainable buildings are critical steps towards building resilience and reducing long-term risk. In this rapidly evolving landscape, staying informed of incoming and evolving policies is crucial for businesses to stay competitive and compliant.”

Acting now, rather than waiting for regulations, will not only mitigate risk but also unlock opportunities for building owners to attract high quality tenants and achieve higher returns on investment in sustainable office buildings.

Contact your nearest NAI Harcourts office today and talk to our experts who will assist you in your next commercial venture.

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