ESG (Environmental, Social, and Governance) is playing an increasingly important role in commercial real estate. From office buildings to retail spaces, sustainability and social responsibility are no longer optional extras; they are essential factors that determine the value and future potential of a property. This shift is driven by increasing regulations and changing expectations from investors and tenants, who consciously choose sustainable solutions.
ESG factors affecting the valuation of Commercial Real Estate:
- Environmental: Energy performance is crucial in the valuation of commercial real estate. Properties with higher energy labels (A or B) not only have lower operating costs but are also more attractive to investors. Sustainable property features, such as solar panels and green roofs, enhance the value of a property and ensure it remains competitive in a market that is becoming increasingly aware of environmental impact.
- Social: The location of commercial real estate and access to essential amenities play a significant role in attractiveness for employees and customers. Properties that are easily accessible and provide amenities like bike parking and proximity to public transport contribute to the well-being of users, which can increase market value and the success of real estate transactions.
- Governance: Transparency and good management are important factors in real estate transactions. Commercial properties that meet high governance standards attract more investors, leading to quicker and more valuable transactions.
Explore how our commercial real estate data provides ESG insights
How Matrixian contributes to ESG in commercial Real Estate
At Matrixian, we understand that insight into ESG criteria is essential for evaluating commercial real estate. Our commercial real estate data offers over 200 attributes per property, ranging from energy performance to construction details. Through our APIs and data tools, we support real estate transactions by providing users with detailed insights:
- Analyzing energy performance: With detailed data on energy labels and energy consumption, we help identify opportunities for sustainability improvements, thereby increasing property value.
- Understanding social and governance factors: Information about amenities and accessibility of properties contributes to forming a comprehensive value assessment.
ESG and the future of real estate transactions
With increasingly stringent EU regulations and growing expectations from investors, the demand for ESG-related data is only set to rise. Companies that integrate ESG criteria into their real estate strategy are better positioned to maintain their property value and achieve successful transactions. Matrixian supports this transition with reliable and in-depth data solutions to future-proof your real estate portfolio.
