Profitability and sustainability are not inherently at odds. When your asset aligns with ESG standards, it brings several key advantages. First, maintenance costs often decrease due to enhanced energy efficiency, as your building leverages optimized electricity and heating systems. Additionally, ESG-compliant properties have easier access to “green financing,” resulting in lower interest rates. Beyond financials, the PR and marketing value is significant: green buildings attract more interest from potential tenants, offering greater stability in occupancy levels compared to older, less environmentally friendly properties. The combined impact on both cost reduction and revenue generation typically makes green buildings more profitable.

Balancing profitability with sustainability in commercial real estate means finding a way to make money while also being good to the environment. Here’s how to do it simply: 1. Choose Eco-Friendly Materials: Use sustainable building materials that last longer and are better for the planet. This can save money in the long run by reducing repairs and energy costs. 2. Energy Efficiency: Invest in energy-efficient systems, like LED lighting and good insulation. They may cost more upfront but save on utility bills over time. 3. Green Certifications: Get your building certified as green (like LEED). It can attract eco-conscious tenants and may lead to tax benefits.

In real estate transactions whether it be commercial leasing or commercial real estate purchase, availing of government incentives such as tax rebates and other concessions available for green buildings or buildings in special economic zones or buildings for sector specific usage, when made preconditioned to closure of the leasing or sale agreement would definitely make the deal both profitable and sustainable for the Lessee/Purchaser.

Focus on integrating eco-friendly practices and technologies that can reduce long-term operational costs while enhancing property value. Prioritize energy-efficient systems, renewable energy sources, and sustainable materials in your negotiations. These investments not only align with corporate social responsibility but also attract tenants and investors who value environmental stewardship, ensuring profitability and sustainability go hand in hand.

With regards to India:- For a company to lease or purchase CRE can be sustainable in terms of management, ESG credits and compliance but for a developer it's an added cost for which he's paying top dollar to bring those services into the building hoping to make that premium in revenue. It's important for occupiers to be considerate of that fact during negotiations to drive more sustainable developments with a goal of securing profitability in the long term and not immediately. This will require business efficiency audits on the CRE being taken during the negotiations instead of after

The very first component is to hire a qualified AACI member of the Appraisal Institute of Canada. In order the assess all aspect of a transaction, financial feasibility is key. Once that is completed then prudent, proper decisions can be made. The value added services from a competent qualified professional ensures making the right investment decisions.