The impact of sustainability on value


9


Within JLL’s central London boundary, we estimate that there are approximately 370 BREEAM rated buildings, of which 13 are classified as Outstanding3


. It is only since


2012/13 that the number of buildings which achieved a certification was evident in any great number. Between 2008-2012 transactions in a BREEAM rated building accounted for 20% by number but over the last five years (2015-2019) transactions in BREEAM rated buildings represented over 60% of deals completed.


A greater shifting pattern in the demand for sustainable buildings is evident when you consider the volume of deals - between 2008-2012 BREEAM rated buildings accounted for a third of Grade A floorspace but in the last five years this rose to more than 70% per annum.


Few buildings are now completed without a BREEAM rating; thus, occupiers are more likely to have a more sustainable building within their shortlist, regardless of whether sustainability is a key decision criteria.


New Grade A leasing transactions by BREEAM rating as a % of all new Grade A lettings 100%


10% 20% 30% 40% 50% 60% 70% 80% 90%


0% 2008 2009 2010 Pass Source: JLL 2011 2012 Good 2013 Very Good 2014 2015 Excellent 2016 2017 Outstanding Includes new build and major refurbishments. 2018 2019


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