How can the hospitality industry drive sustainability?

Sustainable buildings have increased the asset values for commercial real estate managers in Europe, according to research from Deepki.  More than half of the commercial real estate managers say property values have increased between 16% and 28% because of a green premium, which is the added value of using more sustainable offerings because tenants are willing to pay more for more efficient buildings. More than a quarter of respondents say their rental yields have increased for green buildings.  The industrial sector is the most likely to use sustainable commercial real estate, according to 64% of the respondents. Healthcare followed, with 48% of respondents saying the sector is most likely to use green buildings, and retail came in at 45% according to the research. The sector having the least impact in terms of sustainable space was lodging and resorts, which came in with 4% of the responses.  A third of the respondents also say vacancies have decreased by as much as 15% for sustainable buildings, with 36% saying their void periods have fallen by up to 25%.  “Commercial real estate managers who are taking steps to understand and enhance their ESG credentials are helping to meet their net zero goals and deliver better performance for investors,” says Deepki CEO Vincent Bryant. “Buildings with better sustainability ratings are more likely to be occupied which increases their overall rental income.”