Turn your Commercial Property Green and Appeal to More Tenants in 4 Easy Steps
Kermit was wrong, It is easy being green
The environment has never been front of mind when investing in commercial property, however it’s very simple and there are significant benefits to turning your commercial property investments green.
Lately more and more businesses are demanding premises that align with their environmental strategies. The rise of businesses like Refill Nation with their sustainable products and zero waste packaging are just one example of the growing movement to conduct business with as little impact to the environment as possible.
Restaurants and takeaways are offering more compostable packaging and it’s been a while since anyone has used single use plastic bags. Paper straws are also standard, and many people carry their keep cups with us for our caffeine fix. Online businesses are now sending their goods packages that are completely recyclable, (no more bubble wrap or plastic balloons), and are investigating other efficiencies, like reducing the amount of electricity they consume, converting their fleet to electric vehicles and reducing their carbon footprints.
Benefits to an Environmental Policy for Your Commercial Property
1. Appeal to a Wider Range of Prospective Tenants
Having an active environmental policy will make your property more appealing to environmentally minded businesses. Offering facilities and services that allow them to meet their environmental goals will give your property the edge over other properties that do not have environmental polices in place.
This will become even more important when the Carbon Neutral Government Programme (CNGP) comes into effect in 2025. The environmental performance of your property could influence who is able to lease space in your buildings.
2. Reduce Outgoings Costs
Waste removal and electricity costs are two of the big-ticket items on any outgoings budget. Make your property more appealing to tenants by minimising these costs and as a result reducing tenants total occupancy cost.
3. Attract Customers to your Property
Providing facilities like vehicle charging stations installed bring more customers to the site and provide convenience for business owners and staff. You don’t need to own a brand-new green star rated building to make a positive impact on the environment.
Here are Four Simple Steps to Turn your Commercial Property Green.
1. Have an Environmental Policy for Your Portfolio
As part of our Property Management Plus service, CPP can provide, implement and maintain the environmental policy for your portfolio. It’s a simple document that outlines the strategies that will be in place to reduce your property operations effect on the environment. It’s important to review and update your policy periodically. It’s a great thing to include in your marketing material when you are advertising vacancies. Many businesses have KPI’s around meeting their environmental goals.
2. Minimise Waste
The cost of sending rubbish to landfill is increasing rapidly, and the national waste levy will continue to escalate landfill waste costs. A good way to ensure your tenants renew their leases is to minimise the annual increases to the outgoings budgets. To minimise waste for your commercial property, first it is important to understand what waste is going through your rubbish facilities. There are consultants that will audit your waste and make recommendations on how you can reduce the amount of waste that goes to landfill.
Once you know what waste is going through your rubbish facilities, you can offer other recycling or composting options as an alternative to landfill. Recycling is always cheaper than sending waste to landfill.
3. Reduce your Electricity Consumption
You would be surprised how much electricity modern light fittings save. When your common area light fittings need replacing, consider efficient LED’s to reduce your buildings impact on the environment and your outgoings costs. You should also install timers or light sensors for your common area lighting. When it comes to energy efficiency there are many opportunities which range in upfront investment cost. Check out EECA website for more ideas.
4. Provide Charging Stations for Electric Vehicles
Electric Vehicles are taking over the streets, and there are many benefits to offering charging stations to customers or tenants. Some come with advertising revenue and some providers offer lease options. While the customers vehicle is charging you have their attention to get on with shopping in your premises, and your tenants and their staff will appreciate the convenience of being able to charge at work. End of trip micro mobility facilities (for bikes, e-bikes and scooters) can also have the same benefits with potential lower costs.
If you are ready to turn your commercial property portfolio green, contact me on info@cpp.nz to discuss how CPP can assist you with this.
Even if you don’t have a property management contract with us, we can help you write and implement your Environmental Policy. Our first 30-minute consultation is always free.
Happy Investing!
Kirstin
