Green building is one of the most significant trends in the commercial property sector – and the latest data shows that it pays off.

From energy saving and sustainability to comfortable office environments, green building practices have considerable benefits. While some of the construction methods employed in green buildings have been viewed as expensive by developers, this perception is changing rapidly.

One of the reasons for this is the superior return on investment that green buildings produce, year after year.

Fast capital growth, low vacancy levels and higher income

The IPD South Africa Annual Green Property Index makes for interesting reading. According to this year’s report, green buildings outperformed their conventional peers by 3.8%.

  • Reporting a total annual return of 11.6% in 2017, Green Star certified office buildings benefited from rapid capital growth, low vacancies due to high demand, and higher rental income per unit.
  • Resource use was significantly lower in Green Star certified buildings, with water usage being 24% less than in other types of buildings.
  • With lower power and water bills, green commercial property owners will see higher profits from their rental units.

These environmentally friendly buildings will remain popular in the future, as resource use comes into the spotlight in South Africa.

Green buildings a haven for companies in water-scarce SA

The recent water shortage and narrowly-averted “Day Zero” crisis in Cape Town brought this fact home to millions of South Africans – and the commercial property sector has taken notice.

Future developments are more likely to comply with Green Star standards – or come close – as the benefits of water and electricity savings become clear.

With a large number of South Africa’s Green Star buildings located in Cape Town, the city is in an excellent position to take advantage of the demand for sustainable office space.

This should help to “future-proof” the Cape commercial property sector as it adapts flexibly to the changing demands of tenants and investors.

If you’d like to view our extensive portfolio of office space in Cape Town, contact us today. Our area specialists are on hand to assist you with any queries you may have.