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News Release

London

New benchmark highlights the actual running costs of UK offices and shopping centres

Jones Lang LaSalle and the Better Buildings Partnership release first annual Real Estate Environmental Benchmark


​London, 18 July 2013 – Based on annual operational data collated from some of the UK’s largest commercial REITS and institutional investors, Jones Lang LaSalle and the Better Building Partnership (BBP) have published their first Real Estate Environmental Benchmark. The Benchmark provides valuable data for property owners, occupiers and managers on often-overlooked energy, water and waste costs, as well as use.

By assessing nearly 500 UK offices and shopping centres, the Real Estate Environmental Benchmark shows that a typical air conditioned UK office costs £3 per sq. ft. in energy use, but this can vary considerably depending on how well a building is managed.

Green CostsOffices in the lower quartile of the Benchmark, with poorer energy management, are spending as much as £225k per annum whereas offices in the top quartile, that manage energy well, have far lower running costs, around 50% less, at £125k per year. The potential for cost savings for owners and occupiers who demonstrate good energy management practice is therefore clear.

The Benchmark can help identify buildings where there are opportunities to reduce running costs, and can be used to compare the performance of buildings against others in a portfolio, and the industry. It is also a useful communication tool to demonstrate lower running costs and better energy management to key stakeholders such as tenants.

In addition, the Benchmark also illustrates the environmental impact of buildings. It shows that a typical shopping centre (approximately 200,000 sq. ft. NLA) has a carbon footprint of 1,200 tCO2, whereas those in the lower quartile have footprints as much as 2,400 tCO2, the equivalent of 750 households.

The Real Estate Environmental Benchmark is the first published benchmark to include data on water and waste (as well as energy and carbon), thereby providing users with a far more comprehensive understanding of their building’s environmental performance and enabling them to set targets for improvement and communicate progress.

Alex Edds, Director, Upstream Sustainability Services at Jones Lang LaSalle, said: “With utility and waste costs increasing and forming an ever more significant part of a building’s overall running costs, it is important to know how your buildings are performing. The Benchmark provides a useful proxy for building owners, occupiers and managers to compare their own cost and resource use, and track how they are performing against the industry.”

Keith Bugden, Executive Programme Director, Better Buildings Partnership, said: “These benchmarks provide invaluable information to enable the property industry to understand how commercial buildings are actually performing and to enable owners, occupiers and managers to take effective improvement action.  They are also an important step in bridging the performance gap between design intent and actual performance.”

To find out how your building compares to the Benchmark and to find out how you can join, please visit http://www.joneslanglasalle.co.uk/UnitedKingdom/EN-GB/Pages/Real-Estate-Environmental-Benchmark.aspx

Notes to Editors

Jones Lang LaSalle’s Upstream Sustainability consultancy has been delivering environmental performance benchmarking to the property industry since 2001. It was the first of its kind in the UK and continues to be a market leader in terms of size, depth and coverage, covering 13 property portfolios. Its client portfolios are: Capital & Regional, Grosvenor, Hammerson, Henderson Global Investors, Hermes Real Estate, M&G Real Estate, Sonae Sierra, Lend Lease, Majid Al Futtaim, Scottish Widows Investment Partnership, The Crown Estate, Universities Superannuation Scheme and X-Leisure.

The Better Buildings Partnership is a collaboration of the UK’s leading commercial property owners/investors. The BBP began benchmarking the energy consumption and carbon of its members’ portfolios in 2008. Members are The Blackstone Group, British Land, Cadogan Estates, Canary Wharf Group, The Crown Estate, GE Capital Real Estate, Grosvenor, Hammerson, Henderson Global Investors, Hermes Real Estate, Land Securities, LaSalle Investment Management, Legal & General Property, M&G Real Estate, Quintain Estates and Development, Transport for London and Workspace Group.