Low Carbon Workplace Strategy - Investment Rationale
Increasing occupier demand for low carbon commercial buildings in the UK is largely unsatisfied and is driven by a broad range of commercial imperatives. These include stakeholder sustainability awareness and increasing regulation, such as the Carbon Reduction Commitment.
To meet future targets and satisfy growing occupier demand, existing properties will need to be upgraded, as annual new build supply only accounts for 1-2% of stock. With approximately 80% of existing stock over 10 years old and unlikely to comply with low carbon requirements, the shortfall in suitable properties will have to be met primarily via refurbishment.
Due to the imbalance between supply and demand, low carbon properties should benefit from better security and quality of income, greater potential for capital gains, shorter void periods and access to