Business owners urged to "future-proof" properties - commercial mortgages

03 January 2007

Business owners, such as investors with commercial mortgages, are being urged to take steps to ensure the sustainability of their buildings to safeguard against a decline in the value of their properties.

According to Mike Henry, a partner at King Sturge in Bristol, occupiers and developers are becoming increasingly concerned with energy efficiency, pollution and waste management, while there is greater pressure to limit the level of CO2 emitted from commercial buildings.

Landlords, including those with commercial mortgages, may find that occupiers are becoming far more environmentally conscientious due to greater demands placed upon them.

"The result will be a major effect on values and rents for business properties," Mr Henry comments.

"Owners, developers and occupiers of those business properties - from offices to warehouses - must now think about ''future-proofing their premises."

Taking such steps to improve sustainability could enable property owners to rely on a higher rental value for their buildings.

Welcoming the environmental measures outlined in the pre-Budget report recently, secretary of state for the environment David Miliband said that the government believes "every part" of the UK economy has a role to pay in reducing the impact of climate change.