Tenants and Investors Demand Green Certification

Tehdi-Edouard Babigeon, Head of Letting and Sales, RealCorp LuxembourgTehdi-Edouard Babigeon, RealCorp’s Head of Letting and Sales, recently answered some questions on the increasing demand for green certification witnessed by his Agency team.

How often is the presence of a green certificate a factor in the perception of value of properties?

With regard to rental, a green label might have some financial impact. It can generate rents of around 5% higher than average, generally justified by a potential decrease in service costs.

Is there a general knowledge of DGNB or other green certification amongst your clients?

We find that many people looking for premises still have no particular knowledge about the various green labels such as LEED, BREEAM, DGNB or HQE. However, they do become concerned about “green certification” when they realise that it may impact an issue of direct or indirect interest to them, such as:

  • Cost of service charges
  • Comfort of employees
  • Image of the company

And green certification is tending to become a standard for institutional investors in their decision-making. In their minds, a green certificate is generally associated with:

  • A brand new building with sustainable installations and therefore low maintenance costs.
  • A secure investment with no expectation of further costs for unforeseen technical modification due to a future change in the law.
  • A more attractive property for potential tenants due to the low level of service charges.
Which recent sales or lettings by RealCorp have featured properties with green certificates?

We have recently let two properties (to Paiperlek and Kingsley & Partners) in the Serenity building, which has an HQE certification. We have also let two properties in two different BREEAM-certified buildings: one in Central Plaza (Blackfin) and one in Stargate.

RealCorp has several other “green” buildings on its books, and over the years has successfully let offices in all of these. Among them are: SolarWind (BREEAM, HQE, DGNB), Elise (Valideo), Stargate, City Link, Aire, and One on One (BREEAM).

City Link by Pylos LuxembourgAire buidling developed by ALLFIN marketed by RealCorp LuxembourgELISE Leudelange Front viewStarGate: One of the green office buildings RealCorp is marketing in LuxembourgThe SolarWind Project in Windhof Ecopark marketed by RealCorp LuxembourgThe One on One building marketed by RealCorp Luxembourg

You can access more information about green certifications and the certified projects on our books from the Innovative Projects page of this website.

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