What do clients want? By releasing space from within the walls, an in-depth study into the return on investments for in commercial property shows the real value of premium insulation
Delivering on design and performance is a given for any architect. But how do you go about providing real value for the end client? When it comes to commercial buildings, one way is to make sure that they can achieve maximum return on their investment by creating as much let-able space as possible.
A recent study by internationally respected property specialists, Sweett Group investigated the ‘Real Value of Space in Commercial Real Estate’. The research draws on a database of rental values from more than 7000 commercial buildings of different sizes across Great Britain and ten case studies examining four commonly used wall constructions. The focus was to discover whether specifying premium wall insulation at greater capital cost could be justified by the returns that could be realised through unlocking additional floor space, without increasing the building’s external footprint.
The model considers a wide range of factors to calculate the return on investment (ROI) on the cost of the insulation, including location, design, rental income and construction cost. By opting for a premium solution over cheaper, poorer performing insulation the results were impressive:
- In 92% of the buildings analysed in the database, the premium insulation product delivered a positive ROI
- In 40% of the buildings this ROI ranged between 300% and 1000%
- A further 18% of the buildings examined exceeded 1000%, with returns of over 4000% being identified in some instances.
- The 10 real case studies delivered an ROI of between 32% and 1,635%.
To find out more download the research here.