Bentall Kennedy Nov07

Bentall Kennedy

Yardi client Bentall Kennedy recently released a report that may change the way that the industry sees sustainable building. Giselle Gagnon, Senior Vice President, Strategic Resources Group explains, “Our team at Bentall Kennedy has long been committed to implementing sustainability practices across our managed property portfolio – for us it demonstrates to our clients and tenants that we are investing soundly and sustainably,” she says. “So we commissioned a study to seek research-based evidence to test our hypothesis that green office building certifications deliver higher value.” Sustainability within the commercial sector is a vital component of environmental health and corporate efficiency. Commercial properties are responsible for 81 percent of electricity consumption across North American and Europe. The industry also accounts for 40 percent of all energy consumed in those continents. Until now, stakeholders did not have the resources needed to determine which green building certification would be the most effective, yielding the highest returns and making the smallest impact on the environment. Previous studies fell short in a number of ways: All were based on publicly available information, such as posted asking rents, green building certifications and the sale price of assets. The majority excluded data on concessions and their effect on net rents. Many studies overlooked intangible benefits entirely. None examined actual in-depth, diverse metrics across a large office portfolio for as long as 10 years. As a recognized leader in Responsible Property Investing, Bentall Kennedy filled those voids. The company commissioned a comprehensive, long-term study on the benefits of sustainable certifications for commercial properties. In late 2015, The Journal of Portfolio Management published a report of the study entitled, “Green Certification and Building Performance: Implications for Tangibles and Intangibles.” “The study is unique in that, in addition to financial metrics, it looks...