What's Sustainability Worth to Tenants?

NEW YORK CITY—Corporate occupiers value sustainability in their office space, and make a point of it in leasing negotiations. “There can be no doubt that a discussion about corporate social responsibility takes place with almost every occupancy decision made today, “ says Eric Duchon, sustainability strategies director at Cushman & Wakefield. However, a client survey conducted by C&W reveals that questions remain about putting a price tag on it, whether in terms of how much it’s worth to pay more for it or how much is lost by not paying attention to it.

“Demand for sustainable properties from stakeholders on both sides is strong and occupiers and investors are both developing internal policies to address sustainability in their organizations,” according to C&W’s report. “However, occupiers and investors struggle with quantifying the premium being applied in the market for sustainable property.”