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// Our Approach
// CEO's message
Sustainability is about ongoing leadership, strengthening relationships, and continuous innovation. For over a decade, we have believed that obtaining green building certifications such as LEED, ENERGY STAR and BOMA BEST was the right thing to do – energy costs were lowered and tenants were increasingly becoming interested in green buildings. We felt that prioritizing sustainability and delivering certified buildings resulted in a superior experience for tenants and created value for investors.
But belief by itself is no longer enough. In 2014, we committed to obtaining compelling, portfolio-wide evidence that green certified buildings outperform their non-green counterparts. We commissioned an academic research study and were pleased to see it published in September 2015 in one of the most respected peer-reviewed journals, Institutional Investor's The Journal of Portfolio Management. The study results, discussed throughout this report, have deepened our conviction that sustainability attributes are essential criteria to delivering long-term value for investors.
· 3.7% increase in rental rate premiums in LEED certified buildings;
· 4% decrease in rent concessions in Canadian LEED and BOMA BEST certified buildings and;
· 4% occupancy rate premium in U.S. LEED certified buildings.
The research clearly showed something that had never been published in academic literature before: tenants in green certified buildings are more satisfied and more likely to renew. This was most prominent with BOMA BEST certified buildings in Canada, and particularly for the Gold and Platinum levels. We believe this is largely due to the management practices instilled by the certification schemes and the dedication of property management teams to adhere to these practices while offering a superior environment for tenants.
Within sustainable cities, there is a strong demand not just for green certified buildings, but for spaces that help people and companies achieve their broader health and well-being goals. We see health as a growing concern, and opportunities exist to provide spaces that encourage healthy lifestyles.
Bentall Kennedy became a Sun Life Investment Management Company in September 2015. Sun Life has been a Bentall Kennedy client for over a decade and one of the many ways that the two companies are aligned is that we both have a strong focus on and commitment to sustainability. In 2016, Sun Life Financial was named among the Global 100 Most Sustainable Corporations in the World by Corporate Knights for the 7th consecutive year.
We appreciate the dedication of our real estate professionals to these initiatives, and we look forward to your feedback and to further sustainability innovations moving forward.
Chief Executive Officer, Bentall Kennedy Group
June 22, 2016
Your feedback is welcome!
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© 2017 Bentall Kennedy. All rights reserved. All data shown is for year-ending December 31, 2015.