If you own a commercial property in Mount Gambier, you might be considering selling it at some stage, whether to buy other property or to fund your retirement. If this is your situation, you need to think about broadening your buyer base by ensuring your building attracts ‘ethical investors’. In this article, we talk about what ethical investors look for and how you can add them to your buyer base.
What is ethical investing?
This term is applied to investments in companies that have a positive social and environmental impact. Investments are now viewed through a complex lens that includes the Modern Slavery Act 2018 for businesses with a turnover of more than $100 million a year. Ethical investments range from stocks in ethically responsible companies to ‘green’ funds and bonds that fund sustainability initiations, and ‘green’ buildings. Ethical investors want to make a difference by using their investment money to ensure a positive impact on society and the planet.
3 top considerations for ethical investment for commercial property
1. Energy consumption
To attract ethical investors, commercial building owners should check the energy consumption of your property. How can you ensure the building minimises energy consumption and greenhouse gas emissions?
- Fit out your building with LED lighting throughout. Use motion-activated lights in areas that don’t need to be lit all the time. Limit lighting to business hours and enable push-button light activation for after-hours activities.
- Insulate your building. Preventing extremes of heat and cold mean lower use of heating and cooling systems.
- Ensure air conditioning and heating is limited to business hours.
- Ensure the building has good ventilation to minimise the need for cooling in more temperate months.
- Add solar panels and battery storage to your building to reduce energy costs.
2. Social connections
Over the pandemic, mental health came to the fore. Ethical investors in commercial property seek out workplaces that support their workers with the connections to be productive and content. In this case, the onus is on the tenant, rather than the landlord. However, you might consider offering an incentive to help tenants increase the connectivity of their workforce.
3. Impact on the environment
now view a property as a whole. Especially in hotter and drier areas of our continent, commercial development without heat mitigation strategies and plantings can lead to urban heat islands that increase the pressure on air conditioning and other cooling systems ‒ all of which use more energy. Most heat mitigation can be achieved at a minimal cost. If you have land around your property, plant trees and add some grass to cool the surrounding area. The trees might cost you but the ensuing shade is free. A water feature, such as a gabion wall incorporating water, can be cheap to build and cool the surrounding area by up to 10°C (and up to 17°C inside).
Can we help with your Mount Gambier commercial property?
Call Herbert Commercial on 08 87 250 500 for a complimentary annual investment portfolio assessment. From this assessment, feedback may warrant the need to seek Herbert Commercial’s advice and expertise with formulating a plan to action restructuring or renegotiating the best lease scenario moving forward. We’re here to help.
As the only dedicated commercial property agency in Mount Gambier, we have a network with and are sought after by national commercial agencies as a trusted extension to their services. Our wealth of commercial knowledge of the Mount Gambier market extends to the broader commercial market, meaning we can ensure you achieve your commercial property goals.