Sustainability is a defining issue in the modern world. Its importance reaches across various sectors, including commercial property management. For the Bannon Property Management team, the prioritisation of sustainability in its approach to managing commercial properties is not just a choice, but a necessity.
One of the most pressing reasons for prioritising sustainability is the urgent need to address environmental challenges. Ireland, like the rest of the world, is grappling with the consequences of climate change, resource depletion, and biodiversity loss. Commercial properties are known to consume significant amounts of energy and resources. By embracing sustainable property management practices, such as energy-efficient technologies, waste reduction, and sustainable landscaping, Bannon property managers have significantly reduced the carbon footprint of the assets we manage. Our approach aligns with our clients’ sustainability commitments and serves as a model for responsible resource utilisation and environmental stewardship.
Economic resilience is another key component for prioritising sustainability in commercial property management. In an era of fluctuating energy costs, regulatory changes, and evolving consumer preferences, sustainable properties are better poised to navigate uncertainties. Energy-efficient buildings, for example, have lower operational costs due to reduced energy consumption. Over time, these cost savings translate into tangible financial benefits for property owners and occupiers. Additionally, sustainable properties are likely to attract a growing segment of environmentally conscious occupiers and investors who prioritise properties that align with their values. This increased demand can lead to higher occupancy rates, longer lease durations, and enhanced property values, bolstering the economic viability of sustainable property management.
Sustainability in commercial property management is closely intertwined with broader societal trends and global expectations. The rise of environmental, social, and governance (ESG) considerations has reshaped investor and occupier preferences. Increasingly, investors are factoring in sustainability metrics when evaluating real estate opportunities, and occupiers are seeking spaces that align with their values and contribute to their well-being.
It is often said the S (Social) in ESG is the hardest to measure. The social dimension of sustainability reinforces its significance in commercial property management approaches. A sustainable property is more than just an energy-efficient structure; it’s a place that fosters human well-being and enhances the quality of life for occupants. Green buildings are associated with improved indoor air quality, ample natural light, and thoughtful design that promotes occupant comfort and productivity. Employees working in such environments are likely to experience better health, higher job satisfaction, and increased productivity.
By embracing sustainability, property managers not only tap into a growing market but also enhance their reputations as ethical and forward-thinking industry leaders. It would be remiss, however, not to acknowledge the challenges that accompany the integration of sustainability into commercial property management.
Initial investments in sustainable technologies and building upgrades can be daunting, especially for older properties that require retrofitting. Property managers must navigate financial considerations while also demonstrating the long-term benefits of these investments, including energy savings and enhanced property values. Collaborative efforts involving property managers, owners, financial institutions, and stakeholders are essential to encourage sustainable property development and management. Together with Bannon’s sister company, Evia, we offer tailored solutions to our clients. This enables Bannon to provide clients with an interdisciplinary service that offers both property management and technical solutions to sustainable practices.
Bannon has been at the forefront of implementing and actioning sustainable property management across our asset portfolio. This has ranged from the installation of PV panels for electricity generation, replacement of lights with energy-efficient alternatives, and putting in place online portals for building occupiers to ensuring that contractors we use in our assets are in line with our values regarding sustainability objectives.
Bannon has prioritised sustainability in our property management approach for a multitude of reasons. From mitigating environmental impact to enhancing economic resilience and promoting societal well-being, the benefits of sustainability are undeniable. By embracing sustainable practices, Bannon property managers help clients achieve environmental targets, position properties for long-term financial success and create spaces that promote occupant health and productivity. The alignment of sustainable property management practices with evolving market demands, and global expectations underscores the strategic importance of sustainability.
Author: William Lambe, Divisional Director, Bannon
Date: 4th September 2023
