Why green commercial buildings are always a hit with tenants

KCB building in Upper Hill taken on 29th January 2016. PHOTO:WILBERFORCE OKWIRI

Using green building technology has been hailed as the best option when it comes to saving on the world’s limited resources. In fact, experts have said that the planet would use few of such resources if every human alive today were to do his part in incorporating such designs in everyday life.

On the other hand, developers have decried the high cost of installing aspects of green technology in their developments. Experts on the other hand have not tired of telling the world that a green building may only increase upfront green design costs by no more than two per cent but saves 20 per cent of construction costs in its overall lifetime cycle.

So is there a firm business case for incorporating such designs in a commercial development? A green building workshop held in Nairobi last week was told how developers stand to earn more by constructing green structures. A building with better sustainability credentials was said to enjoy increased marketability by attracting tenants easily and commanding higher rental or sale prices.

According to John Kabunye-Kalungi of the Kenya Green Building Society, a person who puts up a green building will realise a five per cent higher rent value than one who has not. If built for sale, a green building will fetch 13 per cent more than one that is not green.

“There are long-term, lower operating costs for the building, little litigation risk as well as low regulation regime from the authorities,” said Kabunge-Kalungi.

To reap such benefits, however, a developer should not incorporate piecemeal aspects of the technology. For example, he said, one cannot save on energy and lose on water.

The experts told the workshop that besides financial costs, people should also look at the quality of life in green buildings. “Tenants enjoy good indoor air quality leading to a more productive staff. Sick-off days are reduced while the company is able to carry on with its core business,” said Kabunge-Kalungi.

In any case, they said, a business owner spends more than 85 per cent of workplace costs on salaries and other benefits as compared to 10 per cent in rent. Energy costs only take up one per cent of the total costs. Go ahead, build green and reap the benefits.