Drivers of sustainability in industrial real estate

Abstract

The significance of sustainability and sustainable development has been the subject of increasing attention. As is evident in our daily lives, sustainability concerns individuals, but it is also on the agenda of governments and private organisations. Many sectors have focused on sustainability, including corporate real estate, but in this sector the focus is mainly on offices. There is a lack of literature on industrial real estate, which plays the supporting role to the main business, in the context of sustainability. This research aims to address this specific type of corporate real estate and to explore, through a case study, what drives sustainable development in the corporate real estate of a manufacturing company located within the European Union. The case study method included literature review, interviews and document analysis to answer the main research question: "What are the external and internal drivers of sustainability in corporate real estate management of a manufacturing company?" Based on literature and market findings the research was designed around four main categories of drivers: stakeholders, financial incentives, regulatory drivers and risk management. The findings show the importance of stakeholders and regulations; financial incentives are important but not directly recognized as drivers; climate change risk and risk management are at an early stage of development. Nevertheless, there is a growing recognition of the importance of sustainability of corporate real estate, despite its supporting role. This research contributes to the knowledge gap regarding the sustainability of industrial real estate.