Nearly a third of investors are now willing to pay more for a green building, according to Jones Lang LaSalle’s Survey of Investor Sentiment, the results of which were released on 3 March. 31 percent of Australian investors are now willing to pay more for a sustainable investment, up from the 18 percent recorded in a similar study in 2008. All respondents said that agree that sustainability impacts on investment decisions.

The report suggests that investor appetite for sustainable investments has not been dampened by the global economic downturn and in fact has returned as a stronger investment driver than ever before. Anita Mitchell, Head of Energy & Sustainability Services Australasia for JLL, said the survey results reflected the fact that market expectations continued to drive sustainability despite the economic downturn.

“It is reassuring to see that, despite the difficult operating environment over the past 18 months, sustainability has remained on the business agenda and has now returned to its highest ever level of investor interest,” Ms Mitchell said.

According to the Chief Executive of the Green Building Council of Australia, Romilly Madew, green building is no longer the exception, but the rule. “More than 220 buildings around Australia have been certified under the Green Star environmental rating system for buildings.  with another 470 projects registered to achieve Green Star certification. In total, around 10 million square metres of building space has been impacted by Green Star.”

Australia has long been a pioneer is sustainable building markets, driven by the Green Star and ABGR (now NABERS) rating systems. “We’ve seen a seismic shift in the market towards Green Star in the last seven years, and green building practices are rapidly becoming mainstream as investors recognise that a focus on sustainability can help to ‘future proof’ their assets,” Madew said.

The survey found market drivers for sustainability had significantly strengthened across the board. Of the seven nominated factors driving sustainability, respondents rated six more highly than in past surveys. The survey showed tenant expectation led the way, having been rated as an important factor by 88 percent of investors surveyed, up from 74 percent in 2008. Achieving reductions in outgoings was rated equally important as achieving NABERS Energy and Green Star ratings. Legislative and industry changes significantly increased in importance with 38 percent of respondents (compared to 29 percent in 2008) nominating it as important

“The results of the survey clearly show market factors such as these maintained the value of sustainability in commercial property, despite the economic downturn. The latest figures also suggest that the business case for sustainability will continue to increase amid more positive economic conditions,” Mitchell said.