Going Green | The New Generation of Office Space

However, today the world's focus appears to be on environmental impact and sustainability.

This movement has moved into the commercial property sector and "green buildings" have become the current flavour of the month.

Banks, in particular, have jumped onto the green bandwagon and, besides ensuring that their own buildings are environmentally compliant, they are tending to favour green projects as far as their lending criteria are concerned.

Nedbank, in particular, has jumped onto this green bandwagon with vigour. They have recently been directly involved in six of the seven building projects that have been awarded Green Star SA Ratings by the GBCSA (the Green Building Council Of S.A.).

Recently interviewed, Frank Berkeley, managing executive of Nedbank Corporate Property Finance, said that it is estimated that buildings consume 40% of the world's energy through construction and ongoing operation. It is this reason that it is becoming increasingly important that future projects must protect themselves against rising energy costs and expensive retrofits.

It is estimated that the cost of building a Green office block would, typically, be about 5 -10% more expensive than a standard development but this differential would be re-couped from reduced operating costs, including electricity and water charges. In Cape Town, the Century City complex was able to recoup the additional costs within two years and this left the owners reaping the rewards of an environmentally sound, healthy building where clean air and water flows. There is, of course, the added benefit of increased rental income as more tenants are prepared to pay higher rentals for green premises.

Over time this will have an impact on values of green properties over conventional stock.