BREEAM

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Source: Knight Frank Research

Prior to the introduction of Energy Performance of Building Regulations, the Building Research Establishment's Environmental Assessment Method (BREEAM) currently provides the principal benchmark for investors, developers and corporate occupiers wishing to assess, and display, the 'green' credentials of a commercial building, be it a new build or refurbishment. The main difference between voluntary BREEAM ratings and the forthcoming introduction of mandatory EPCs/DECs is that BREEAM concentrates on a wider range of factors. It focuses on the 'sustainability' of a development and involves consideration of the economic, ecological and social aspects it embodies. These factors range from where the building is built (i.e. brownfield v greenfield site), through to the health and well being of building occupiers, in addition to considering transportation issues. By comparison, EPCs/DECs will focus solely on a building's emissions and energy usage.

The key objectives of BREEAM are:

• To highlight buildings that have a reduced environmental impact
  
  
• To increase awareness of the benefits of buildings with reduced environmental impact
  
  
• To encourage best practice in environmental building design
  
  
• To set standards above those required by building regulations

LEED (Leadership in Energy and Environmental Design) is the US equivalent to BREEAM. It has been developed by the US Green Building Council.

A BREEAM rating involves awarding credits that are combined and weighted giving rise to one of four standards: Pass, Good, Very Good or Excellent. From Spring 2008 onwards, a further standard, labeled Outstanding, will added. Buildings that are given an Outstanding award will be assessed at both the design stage and after they are completed. There will be further regular checks to verify how the building performs while occupied.

The imminent introduction of green leases – whereby landlords or developers are able to link issues such as energy consumption, water usage and waste production to financial incentives/penalties or even rent review discussions – highlight the ability of tenants to compromise the landlord or developer’s original vision.

The possession of a BREEAM certificate - particularly a Very Good or Excellent rating - by a landlord or developer helps market a property to potential occupiers who are keen to affirm their CSR commitments. If a landlord or developer aims to achieve a Excellent rating then the desire for such a rating can be a condition of practical completion through the building contract. Over the 1998-2006 period, 23% of buildings assessed achieved an Excellent rating, and a further 60% a Good rating.