Emerging Green Bond Market For Real Estate Revealed By Latest S&P Research

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real-estate-photography By Nicci Romanovsky Via Flickr

The demand from investors for corporate bonds is growing, however issuance by Real Estate Investment Trusts (REITs) is currently limited.

Further growth in the green bond market should allow greater standardisation that would preserve commercial real estate companies’ (CREs) operational flexibility.

 
Tenants are increasingly demanding in terms of the environmental performance of the buildings they rent. This is because properties with green credentials support tenants’ cost-saving programs and their efforts to demonstrate better sustainability performance.

 
This is pushing CREs to improve this aspect of their portfolios, notably through green building certifications.

 
Investors view such certifications as reliable and trustworthy, which eases REITs’ access to the green bond market.