Part of our market leading research, BIG Things in SMALL Boxes, produced jointly with Savills, revealed that as ESG targets such as Net Zero by 2050 continue to approach, companies that prioritise sustainable construction could reap significant rewards.
At Potter Space, we’re committed to improving the built environment across our national locations and are engaged in a significant programme of development and reinvestment to create future-proofed warehouses that will become lasting homes for businesses.
The benefits of going green
Analysis from the report shows that warehouses with better energy efficiency and environmental performance are benefitting from increased marketability and rental returns. Essentially, these units can be marketed and rented out at a slightly higher rate over less sustainable units.
While the gap may be slight for now, there is potential for companies with better performing properties to pull ahead of the competition in more ways than one.
The report shows that sustainable buildings additionally attract a higher demand (relative to supply) over their peers of similar ages and in the same locations. Further to this, buildings that are BREEAM rated ‘Outstanding’ or ‘Excellent’ combined with an EPC rating of ‘A’ or ‘B’ not only achieve higher rental occupancy levels compared to lower rated buildings, but also have a greater sale value as they are seen by customers as a ‘premium product’.
Sustainability for the long-term, not just for returns
Increased returns might be a great incentive to get the sector moving towards more sustainable buildings, but any ESG strategy should seek to improve buildings for the people who work within them and the communities in which they reside.
The days of poorly lit, inefficiently built spaces are long gone, and the small to mid-box segment of the industrial and logistics property market has become home to thousands of innovative businesses. Customers are crying out, not only for more space, but for space that is futureproofed and able to provide the perfect springboard for their business ambitions.
Hamish Minshull Quantity Surveyor at Potter Space said: "These indicators of demand for green and sustainable buildings from the market are helping to drive sustainable construction. We’re building to BREEAM Excellent on all new units. Solar PV, EV charging points and use of low embodied carbon materials, to name a few, are all common place now within our construction criteria."
Looking to the future
At Potter Space, we’re progressing our five-year vision of development across our key business parks in Ely, Selby, Knowsley, Ripon and Droitwich. Getting the right buildings in place at the right time for our customers – new and long term – is vital.
To find out more about the benefits of going green and a host of other industry insights, read our report.
Take a look through our To Let page to see if one of our new buildings could be your perfect home for business.
