Office Snapshot Sweden 2024 Autumn

The latest report from Cushman & Wakefield highlights the growing trend of environmental certifications for buildings in Sweden. Systems like Miljöbyggnad, BREEAM, and LEED are increasingly used to certify buildings, driven by a focus on sustainability and environmental impact. Tenants are demanding higher ESG standards from landlords as they implement their own guidelines for office use.

The report explores whether tenants are willing to pay a premium for environmentally certified buildings. With the introduction of CSRD and ESRS E1, companies face increased pressure to report emissions, potentially accelerating positive trends in the real estate sector. Certifications help ensure buildings meet sustainability standards and reduce energy use. Tenants are not only interested in certifications but also actual energy consumption, while investors focus on energy class and declarations.

Cushman & Wakefield’s analysis shows that certified buildings in Stockholm command a rental premium of 4-9%, depending on the certification level. This premium positively impacts property values. The study analyzed around 2,300 leases across 250 office buildings in Stockholm, revealing significant premiums for certified buildings, especially in decentralized areas where 75% of office space is certified.

The report concludes that environmental certifications add value, particularly at higher levels, and that tenants are willing to pay more for certified offices outside central Stockholm. In central areas, location has the greatest impact on rent, while building quality and certification are more important in peripheral areas.

Read the report here.