CB Richard Ellis, Cushman & Wakefield, Deloitte, DTZ, GVA, Jones Lang LaSalle and King Sturge are best placed to drive new revenue in sustainability advisory services to clients who seek sustainability solutions, according to a new report from independent analyst firm Verdantix.
The in-depth study compares 17 UK real estate advisors on 44 assessment criteria. Suppliers were assessed on their provision of sustainability services in brokerage and agency, corporate finance, valuation, planning and development, design and build, project management, facilities management and corporate real estate.
In addition, Verdantix assessed firms on their corporate sustainability strategy and performance. Firms included in the study are Bidwells, BNP Paribas, Capita Symonds, Carter Jonas, CB Richard Ellis, Colliers, Cushman & Wakefield, Deloitte, DTZ, GVA, Jones Lang LaSalle, King Sturge, Knight Frank, Lambert Smith Hampton, Sanderson Weatherall, Savills and Strutt & Parker.
"Regulation, such as such as the European Union's Energy Performance of Buildings Directive and Part L of the UK's Building Regulations, puts sustainability on everyone's real estate agenda as real estate investors, developers and occupiers strive to improve the sustainability performance of their buildings," commented Ray Crowley, Industry Analyst at Verdantix.
"But it's the long-term risk of building obsolescence, caused by legislation and changing occupier demand, which makes sustainability a key driver in buy side' real estate long term decision making. Clients need to factor in sustainability risks even where they aren't currently priced into the market and this is where savvy real estate advisory firms can add value. 2011 marks the beginning of a market shift for real estate advisors: sustainability advice embedded across all service lines will become the norm."
The Verdantix report, Green Quadrant® Sustainable Real Estate Advisors, is based on in-depth interviews with an independent panel of 15 senior leaders across the real estate investment, development and tenant communities within the UK. Verdantix also interviewed practice leaders from participating real estate advisory firms, carried out desk-top research and engaged advisory firms in a 44 point questionnaire. Key findings of the study:
CB Richard Ellis, Cushman & Wakefield, Deloitte, DTZ, GVA, Jones Lang LaSalle and King Sturge lead the UK market for sustainable real estate advisors. Leading advisory firms have embedded sustainability across all service lines. They proactively engage clients on sustainability value risks even where these are not currently priced into the market, for example GVA's sustainability profiling of clients' properties. Leaders have added expertise to strengthen historical lines and provide advice on a more strategic level, for example Deloitte acquired DCarbon8 in 2010. Leaders also ensure their internal operations reflect their external advice. Sustainability is a board level issue, for example CB Richard Ellis's Corporate Social Responsibility (CSR) program is led by their EMEA Chairman.
Jones Lang LaSalle stands out among leaders in services and approach
Jones Lang LaSalle began exploring the market for sustainability opportunities back in 2007, when they acquired Upstream, a specialist UK sustainability consulting firm. They have a diverse track record in sustainability projects - from bespoke discounted cashflow sensitivity analysis to assess valuation impacts of sustainability investments to acting as sustainability advisor for Ashford's new commercial quarter.
Three specialists have broad capabilities and one or two innovative solutions
Capita Symonds, Colliers and Knight Frank have a broad set of sustainability advisory offerings and one or two truly innovative solutions. Colliers International is pursuing a strategic partnership with CarbonSystems, a carbon and energy management software firm. Knight Frank has partnered with the Institute For Sustainability to advise on how infrastructure can facilitate zero carbon development, providing a valuable bolt-on to existing service lines within the firm.