Buildings with sustainable features can command higher rents and attract tenants more quickly, according to a new report published by RICS.

‘Green Value’ is an independent research study that looked at green buildings in Canada, the US and the UK and concluded that a clear link is emerging between the market value of a building and its green credentials.

“We weren’t surprised that evidence of improved asset value exists, but didn’t expect to find that productivity benefits can even exceed the building’s value,” says Chris Corps, RICS Canada past-chairman, who initiated and led the study.

The study also found that the industry may be failing to get the message across that the main beneficiaries of green buildings are the occupants. According to the report, while a lot of attention has been focused on energy savings, these are usually less than 1% of business operating costs. By comparison, total annual real estate expenses are usually around 10% of such costs, while staff costs can be as high as 85%. In some instances, green features improve productivity, but neither owners, developers, appraisers, nor the green building sector, fully value or communicate this advantage.

The study was carried out with 10 private and government bodies.