The effect of sustainability on commercial occupiers' building choice

The purpose of this paper is to explore how the availability of sustainable buildings may affect the decisions made by office occupiers in their building selection process.

The structure of the paper includes a review of both the sustainability literature and traditional location literature which serves to inform the study. A qualitative study comprising 13 in‐depth one‐to‐one interviews with decision makers of a variety of organisations who have chosen to locate in a “sustainable” building within the central business district in Auckland, New Zealand is undertaken.

The research suggests that selecting a building that is perceived to be sustainable by the market may not be the ultimate driving factor in the office location decision and that more emphasis is placed on micro location factors, attractiveness to staff, marketing and flexibility. The importance of each of these factors tends to be influenced by the size and type of organisation as well as the availability of suitable buildings in the market. The research reinforces the finding that organisations generally seek accommodation that can “add value” to their specific business.

The study provides a deeper understanding on the impact of the emergence of sustainable buildings in the decision‐making process of office tenants and how this may be affected by the size and type of the occupier organisation. These findings will be of practical application to property professionals involved in the development, sale and valuing of sustainable buildings.

This paper provides in‐depth insights into business location decisions from the perspective of a variety of tenants choosing to locate within a CBD.