The most recent UN Climate Summit has many business owners wondering about the best ways to incorporate green ideas into their own businesses. For those currently looking to invest in new commercial properties, you may be wondering if limiting your search to those with green technology built-in is worthwhile. Here’s what you need to know about both the advantages and disadvantages of the situation.
What Are the Advantages?
When buying a property that has been built with its green credentials in mind, whether it be from installing solar panels or improving its cavity wall insulation, you should expect the annual utility bills to be heavily reduced. Similarly, with many governments around the world now offering different incentives for businesses operating with renewable energies in place, you can expect additional support depending on where you’re based.
Likewise, consumers in general are more conscious of the consequences of their actions on the environment. In fact, according to research from Cone Communications, a record-high 71% of Americans consider the environment when they shop, up from 66% in 2008. Even if your business doesn’t interact with the end consumer directly, highlighting your green initiatives to the public can still improve your company’s reputation and help to attract a new demographic of customers.
What Are the Added Risks?
However, despite these advantages, there are also added risks when investing in green commercial property that you should be aware of. Since these investments are built with the future in mind, you’ll have to take into account your current and future security when deciding whether or not you can afford the additional initial costs. Many industries can be unpredictable, and just because you’re in a comfortable position now doesn’t automatically mean this will be the case in a few years.
Limiting your search criteria to properties that have already been developed with green interests in mind could also drastically limit your buying options, depending on where you’re based. Use tools like the GVA property finder to get a better idea about what’s available to you. In some instances, it may be more economical to redevelop the property with new, greener technologies over the course of ownership rather than upfront.
Ultimately, focusing your efforts on green commercial properties should be considered an investment for the future. While the full effects may not come into fruition until further down the line, in the future you’ll be glad you make a forward-thinking decision.