Pictured above: Elle Cass, Planning Partner at King Sturge

Whilst sustainability may have eased down the agenda for occupiers, Elle Cass, planning partner at King Sturge says developers still need to think green for future new-build and refurbished schemes if they don't want to loose out.

"Clearly in the current economic climate, sustainability isn't going to be the main driver for occupiers looking to move to a new office.  Location, availability of deals and the quality of a building will override this, however particularly in the financial and business services sectors research suggests that companies are much more likely to think about their green impact and still include sustainability on their wish list."

For most businesses, the practical side of sustainability means flexible space, energy efficiency, effective monitoring systems and sustainable waste and water systems.  Yet there are more cultural effects that underpin a company's move to think green and this Elle believes will have a strong impact on occupier's thinking.

"Even in a recession if a serious move is being made to new-build offices," says Elle "A company will want to tick all the PR boxes for promoting change and particularly to assist in client retention.  Internally a move provides the opportunity for cultural change.  It's a fresh start,  encouraging more sustainable practices and assisting with employee retention."

The UK is already lagging behind America for green buildings.  High Energy Start- rated buildings in the US are bringing in rents 3% more per sq ft than non-green buildings of the same size, location and type, according to the Royal Institution of Chartered Surveyors.

"Non-green buildings will become outdated models," says Elle. "It is important that investors and developers understand occupier requirements more clearly if they are to compete in future markets.  Business is quieter now, but it will bounce back and their future plans need to be green.

"Also a growing understanding that commercial buildings are major contributors to increased carbon emissions and the targets set by the Climate Change Committee for UK non-domestic buildings and an imminent code for Sustainable Buildings will also mean investors and landlords will have to sit up and listen."

The carbon retrofit market in the UK is estimated to be worth millions over the next 10 years and this reflects increased legislation and occupier demand for more efficient buildings even in the second hand market.

"Whilst the recession has halted much of the speculative new-build, we are advising clients to make sure sustainability is on their agenda when planning developments in the next three to five years as failure to take a more long term view could mean their offices stay vacant for far longer than those that satisfy occupier's perceptions of being green.  Planners will also look more favourably on 'green' features."

This is reinforced by new research published by the Investment Property Forum (IPF) on the emerging demand for sustainable UK offices which states that landlords are not generally seen as strong agents for change in the office sector and that a step change is needed if the sector is to supply more sustainable offices to satisfy an increasing demand in the UK.

The research suggests that sustainability has become relatively more important in recent or imminent moves over the past 12 months, compared with moves made much longer ago and the presence of CSR policies in companies also appeared to be significant of the 50 major corporate occupiers surveyed.

Peter Clarke, partner in charge of King Sturge's Birmingham office Valuation department added  "The Australian Property market provides a guide as to what we can possibly expect in the medium term. In 2003 energy efficient measures were included within The Building Code of Australia for all buildings, which has created a two tier rental market. Higher rents are being achieved for 'green' buildings, driven by occupiers being prepared to pay more for these buildings to fit in with their CSR policy and as a tool to recruit and retain staff. The UK rental market may therefore follow suit.

"In the short term investors are likely to pay lower yields for 'green' buildings in the anticipation of receiving higher rental growth going forward, leading to higher capital values."