Property investors will have to be conscious of socially responsible and environmentally neutral practices in the near future, according to an industry property portfolio manager.
Already, buildings are being ‘green rated’ which is calculated by how much electricity and water a particular property uses, a rating that will impact on the type of tenant a property manager can attract to inhabit the building.
“The Federal Government has come out and said if your building is not above a certain rating then we will not sign a lease, and if it is an existing building we want to see you demonstrate a plan to get the rating up,” Australian Unity Investments (AUI) portfolio manager healthcare and industrial property, Chris Smith said.
“With any new building now, if you’re not four stars [green rated] or above then you won’t be in the game,” he said.
The trend is being driven by employees who want more environmentally-friendly workplaces to be provided by their employers.
“It’s being driven at a social responsible level, with younger people demanding to work in safer environments,” AUI head of property Martin Hession said.
Outside of water and energy issues, employees are asking for facilities that will enable more socially responsible lifestyle practices, such as the provision of bicycle racks, according to Smith.
He compares this development to the demand for optic fibre cables in buildings, which surfaced in the market a few years ago.
