The majority (80%) of European commercial real estate asset managers are accelerating plans to improve energy efficiency across their property portfolios to help deal with the energy crisis and rising energy bills.
The new research by Deepki, the ESG data intelligence firm, which surveyed 250 European commercial real estate asset managers in the UK, Germany, France, Spain and Italy, also highlighted the huge energy cost increases asset managers are experiencing within their portfolios.
Real estate asset managers improving energy efficiency
Over half (53%) of those questioned said they had seen energy costs rise by over 51% across their commercial real estate portfolios. Staggeringly, of these, 18% cited a massive increase of between 71% and 90% in the cost of their energy.
The need for more energy efficient commercial buildings is also highlighted by the increase in green premia – the higher pricing power of more sustainable buildings. The research reveals that over half (56%) are seeing an uplift of 11%-15% and a further 28% said they had experienced a 5%-10% value enhancement, reflecting the growing demand for more efficient buildings from occupiers and the people that use them.
At the other end of the scale, 82% expect the energy crisis to cause a dramatic increase in unoccupied buildings which do not perform well when it comes to energy efficiency. Those assets with poor energy efficiency will also be sold more quickly than originally planned, according to 81% of respondents.
Commenting on the research findings, Vincent Bryant, CEO and co-founder of Deepki, said:
“Businesses across Europe are counting the cost of the energy crisis, and commercial real estate is no exception. However, rather than stopping investment, the sector is taking action, either by accelerating plans to improve the energy efficiency of buildings or to divest those where the performance is particularly low.”
Deepki is the only company in the world offering a fully populated ESG data intelligence platform to help commercial real estate investors, owners and managers improve the ESG performance of their real estate assets, and in the process enhance their value.
The SaaS platform enables clients to collect ESG data, get a comprehensive overview of their portfolio’s ESG performance, establish investment plans to reach net zero, and assess results. It also allows users to report to key stakeholders. The platform is supported by carbon and ESG experts who partner with clients across data collection and analysis, through to ESG strategy definition and implementation.
Now with over 250 employees, offices in five European capitals and operating in over 41 countries, Deepki has become the global leader in ESG and data intelligence solutions for environmental transition in the commercial real estate sector, with more than 500 million m² – almost five times the area of Paris – under management.
For further information about Deepki’s end-to-end solutions, visit: www.deepki.com
Research conducted by Pureprofile with 250 commercial release estate asset management professionals in the UK, France, Germany, Spain and Italy (50 respondents per market) in October 2022. 70% of respondents work for an institution with over £0.5 billion AUM.
Founded in 2014, Deepki has developed a SaaS solution that uses data intelligence to guide real estate players in their Net Zero transition. The solution leverages customer data to improve assets’ ESG (Environmental, Social and Governance) performance and maximize asset value. Deepki operates in over 41 countries, with over 250 team members across offices in Paris, London, Berlin, Milan and Madrid. The company serves clients including Generali Real Estate, SwissLife Asset Managers and the French government, helping to make their real estate assets more sustainable at scale.
In March 2022 Deepki raised €150 million in a Series C round of funding which was jointly led by Highland Europe and One Peak Partners. Other investors include Bpifrance, through their Large Venture fund, and Revaia.
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