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New research shows that shopping centres that invest in energy efficient features boost their market value by up to, and over, 5%.
The research from BCSC (British Council of Shopping Centres) and its research partner CBRE, the global real estate advisor, spanned 35 UK shopping centres to investigate the dynamic between energy efficiency and asset value.
The results, which are backed by EU data, are most pronounced for older shopping centres (those over 25 years old) with potential gains of over 5%. For an average £100m shopping centre in the UK, this translates into a new market value of at least £105m when energy-intensive equipment is replaced with new apparatus that offers energy-saving features as standard. The report also highlights that failure to undertake energy efficient investments, in whole or in part, risks effective loss of value of £5m.
In addition, substantial savings associated with investing in new energy efficient equipment, come from both increased energy efficiency and lower maintenance costs. The biggest savings are derived from replacing the lighting, escalators, lifts and heating, ventilating systems, and air conditioning (HVAC) units.
Rebecca Pearce, EMEA head of sustainability, at CBRE, commented: “Shopping centres are one of the biggest single contributors to CO2 emissions in the UK commercial property sector. To finally have evidence to prove that energy efficiency is not just a costly exercise without financial benefits is massive for our industry.
“This needs to serve as a wake-up call to developers, investors, owners and all associated stakeholders that energy efficiency and sustainability isn’t a fad. It’s here to stay, adds real value when implemented properly, and is business critical to the lifecycle of shopping centres. Essentially, if no action is taken owners should expect value erosion or price chipping by future prospective acquirers.”
Acces the full report here.
Picture credit: © Clearvista | Dreamstime.com
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