Tenant focus on green building benefits

Colliers latest report shows Green Star rated buildings are outperforming the sector

Colliers International’s latest research on occupancy levels in Green Star rated buildings shows they outperform the overall office sector and that tenants have a strong preference for the benefits that green-rated buildings provide.

The research, which coincides with World Green Building Week 2019, shows occupancy at a significant reduction to the record low overall market vacancy rates.

“Demand for office space in Wellington is at all-time highs,” says Chris Dibble, Director of Research and Communications at Colliers International.

“The benefits that Green-Star rated buildings provide remains a top priority for tenants as well as seismic strength. This has meant the vacancy rate for Green Star rated buildings in Wellington CBD office premises remains at zero.

“In Auckland’s CBD office sector, the vacancy rate for Green Star rated buildings is currently at 2.8 per cent.

“We are aware of imminent leasing agreements that will reduce this to 2.3 per cent,” says Dibble.

This compares to the overall Auckland CBD office vacancy rate at 5 per cent, which is a two-decade low.

Dibble says the sustained low occupancy rates in the green building sector is a testament to why landlords and investors should continue to focus on sustainability.

“Our ongoing research in this sector shows that sustainability features result in less vacancy and leasing downtime between tenant moves.

“Not only do tenants benefit, but so do landlords. Higher occupancy means higher total returns, especially over the long-term.”

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