In an increasingly competitive commercial real estate market, maintaining an edge is crucial. As the industry evolves, the pressure mounts on asset managers to meet investor, occupier, and regulatory requirements. Recently, I had the opportunity to sit down with Michael Thompson, a seasoned real estate strategist, to discuss the multifaceted benefits of certifications, particularly focusing on ESG alignment, tenant attraction, and expert advice on BREEAM and energy strategy.
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Michael has a wealth of experience in managing both wide portfolios and single assets. His holistic approach to enhancing real estate performance has led to better returns and long-term value retention for his clients. Our conversation shed light on the tangible and intangible benefits of certifications in the commercial property sector.
The ESG Alignment Advantage
“Aligning with ESG (Environmental, Social, and Governance) principles is no longer optional,” Michael began, his tone both authoritative and reassuring. “It’s become a fundamental aspect of real estate investment strategy.”
He explained that ESG criteria serve as a benchmark for investors looking to allocate capital responsibly. “Investors are increasingly scrutinising the sustainability and ethical implications of their investments. Properties that meet ESG standards are more attractive because they promise not just financial returns but also positive social and environmental impact.”
Michael pointed out that obtaining certifications like BREEAM (Building Research Establishment Environmental Assessment Method) can significantly enhance a property’s ESG profile. “BREEAM is one of the most renowned sustainability assessment methods for master planning projects, infrastructure, and buildings. It provides a comprehensive framework to measure and certify a building’s environmental performance,” he noted.
Attracting and Retaining Tenants
Beyond investor appeal, certifications play a pivotal role in tenant attraction and retention. “High-quality tenants are increasingly looking for spaces that reflect their own corporate values,” Michael explained. “A building with a robust certification can be a decisive factor for companies that prioritise sustainability and employee well-being.”
He shared an anecdote about a recent project where certification made all the difference. “We were managing a commercial property that had a lot of potentials but was struggling to attract high-profile tenants. After obtaining BREEAM certification, we saw a significant uptick in interest. It was like a seal of approval that reassured prospective tenants of the building’s sustainability credentials.”
Michael highlighted that tenants are not just looking for green credentials but also for assurances about energy efficiency and overall building quality. “Energy strategy advice goes hand in hand with certification. It’s not enough to have a label; you need to back it up with tangible energy performance improvements. This can range from optimising HVAC systems to integrating renewable energy sources.”
The Reassurance of Expert Guidance
Navigating the complexities of certifications and energy strategies can be daunting. “This is where expert advice becomes invaluable,” Michael asserted. “Having a specialist who understands the intricacies of BREEAM, energy performance certificates, and ESG criteria can make a significant difference.”
According to Michael, working with experts provides a level of reassurance that is hard to quantify. “When you have a team that understands the regulatory landscape and can provide tailored advice, it takes a lot of the guesswork out of the process. It’s about more than just meeting standards; it’s about optimising every aspect of the property to enhance its overall performance.”
He emphasised that expert advice also helps in avoiding the pitfalls that can lead to assets becoming stranded. “In today’s market, properties that fail to meet evolving standards can quickly lose value. A holistic approach that includes certifications and energy strategy advice ensures that assets remain competitive and retain their value over the long term.”
A Holistic Approach to Real Estate Performance
Michael’s insights underline the importance of a holistic approach to real estate management. “Whether managing a wide portfolio or a single asset, the goal is to enhance performance across the board. Certifications are a key part of this strategy, but they must be integrated with broader energy and sustainability initiatives.”
He concluded our conversation with a note of optimism. “The commercial real estate market is under pressure, but with the right strategies and expert guidance, there are tremendous opportunities for growth and value creation. Certifications like BREEAM not only help in meeting regulatory requirements but also in aligning with investor and tenant expectations, ensuring long-term success.”
As I wrapped up the interview, it was clear that Michael’s approach was not just about ticking boxes but about creating real value through a comprehensive and forward-thinking strategy. In a landscape where ESG alignment and tenant attraction are paramount, the reassurance of expert advice is indeed a game-changer.
Marcia Snyder
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