Green office buildings continue to outperform the total office property sector, according to figures released by the Property Council and IPD Australia.
The IPD Australian Green Property Index showed an annual total return of 10.6 per cent for Green Star rated, and 9.9 per cent for NABERS rated, office assets for 2012.
The total office property sector, comprised of rated and non-rated assets, reported an annual return of 9.7 per cent.
IPD Australia and New Zealand managing director Anthony De Francesco said the latest investment return results “clearly show that green buildings deliver an enhanced investment proposition both in terms of investment return and a firmer cap rate”.
“The enhanced performance of Green buildings is due to a higher capital return component, consistent with generally more favourable space market metrics,” he said.
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