Strategic Focus: Defining The Business Value Of Sustainable Real Estate
Ben Hext
Susan Clarke
Access this research
Access all Built Environment Energy & Decarbonization content with a strategic subscription or buy this single report
Need help or have a question about this report? Contact us for assistance
Executive Summary
The real estate community is increasingly engaging with the sustainability agenda, following the emergence of CEO-led carbon reduction targets, tighter building regulations and new interest from financial markets in environmental, social and governance (ESG) criteria. This report analyses the broadening business benefits of sustainable real estate across four key stakeholder groups: investors, owner-occupiers, facilities services firms and C-Level business executives. Our research finds that sustainable real estate is starting to provide value across six core areas: reduced operating costs, employee well-being, reduced climate risk, increased portfolio performance, brand benefits and optimized borrowing costs. To seize the benefits at scale, landlords and occupiers need to deploy innovative strategies to overcome the tenant-landlord split incentive and to fund projects with long-term paybacks.Sustainability Returns To The Agenda For Corporate Real Estate Executives
Investor Pressure And Corporate Targets Make Sustainability Impossible For Real Estate Managers To Ignore
Firms Are Targeting A Widening Range Of Business Benefits Through Sustainable Real Estate
Four Persona Categories Clarify The Value Pools From Sustainable Real Estate
1) Real Estate Investors Are Using Sustainability To Attract Funds, Access Capital And De-Risk Their Portfolios
2) Building Owners Benefit By Increasing Asset Value And Reducing Operating Costs
3) Facilities Managers Can Use Sustainability As A Business Winning Strategy
4) Business Executives Are Pushing For Sustainable Buildings To Differentiate Their Brands
Ambitious Real Estate Directors Must Navigate Multiple Hurdles To Capture The Benefits At Scale
Figure 2. Executives Are Targeting A Broadening Array Of Benefits From Sustainable Real Estate
Figure 3. The Business Value Of Sustainable Real Estate By Four Persona Categories
About the Authors
Ben Hext
Industry Analyst
Ben is an Industry Analyst in the Verdantix Smart Buildings practice. His current agenda covers hardware and software solutions for energy management, on-site power ...
Susan Clarke
Research Director
Susan leads the Verdantix Smart Buildings practice. Her current research agenda focuses on software solutions for real estate management including integrated workplace managem...
Other related content
Every construction project is leaking margin – through poor cost visibility, fragmented data, and late-stage rework. In today’s environment of volatile material prices, labour shor...
Upcoming / 24 March, 2026
Energy price volatility, grid instability and geopolitical risk are exposing how vulnerable many organisations’ energy strategies really are. Energy, procurement, operations and su...
Upcoming / 12 March, 2026
In 2025, average UK office occupancy was around 40%, the highest level since the pandemic but still well below pre-pandemic norms. As organisations continue to bring people back in...
26 February, 2026
Today’s facilities managers are no longer just responsible for keeping buildings running - they’re expected to deliver on sustainability goals, ensure energy resilience, and overse...
17 February, 2026
On November 3-4 2025, Greenbuild hosted the second annual Sustainable Finance and Investing Forum, a pre-conference event held exclusively for real estate investors, operators, dev...
04 December, 2025
Organizations are under growing pressure to boost asset performance and project outcomes through tighter data integration and smarter building controls. Digital twins are shifting ...
09 December, 2025