|
'Green' buildings the way forward
Date published 16 October 2008
Although South African property developers are adopting more environmentally friendly design and construction principles, there is concern about the additional costs involved in going green.
Architectural consultant Rob Bray raised the issue at the South African Council of Shopping Centres' (SACSC) annual conference, saying that adhearing to strict green principles would add between 9% and 11% to a project's total building costs.
"That is what the returns on most shopping centres are in the first year of operation. Such an additional cost would mean zero returns for investors in the first year, which would not make new projects feasible."
Bray said the property industry would need to find ways around the cost issue to make sure that green principles can be incorporated into new buildings without eroding investors' profit margins.
However, Bruce Kerswill, executive chairman of the Green Buildings Council of South Africa (GBCSA), says green buildings need not cost more than conventional ones, depending on how green you go.
Kerwill says the experience in Australia has been that the typical green building costs only 5% more. Says Kerswill: "A typical green building may cost 5% more but it reduces electricity and water consumption by 30% to 50% and reduces equipment load on air conditioning and lightning."
He argues that tenants are becoming increasingly aware of the benefits that green buildings offer and are therefore prepared to pay a premuim in rentals.
"Green buildings offer more natural light, more fresh air and reduces sick days associated with the so-called sick buildings syndrome."
Douw de Kock, who was recenlty appointed as Broll Property Group's dedicated "green" officer, says the property industry has no choice but to adopt a new mindset about environmental issues. He notes that the country's electricity crisis will continue to drive the adaption of green building principles.
De Kock says traditional mindsets on investment returns and costs, consumption and efficiency all need to change. "Most energy efficiency measures are plain common sense." He points to recycling, rainwater harvesting, using alternative sources of energy and reducing the carbon footprint of buildings as key starting points for commercial and industrial property owners.
Says De Kock: "Swapping hazardous chemicals with environmentally-friendly alternatives, and putting recycling programmes in shopping centres are always that commercial property owners and managers can start to run greener portfolios." The cost of green buildings will be one of the key issues at the GBCSA's Green Building Conference in Cape Town from 2 to 4 November.
Author: www.property24.com
|
