Insulation: Do you really get what you pay for?
That question is right at the heart of this new blog series which will take an in depth look at a major new study from Sweett Group and consider the questions it poses for architects, developers and property investors right across Britain.
The study looks specifically at the impact of using a premium performance wall insulation solution in commercial properties, compared to a cheaper and poorer performing insulation. As you might expect, the cheaper insulation resulted in walls which were up to 80 mm thicker. The real question however, is how much floor space can actually be unlocked by opting for a premium solution, and perhaps more importantly, what is the real value of this space?
To find out, Sweett used a database of over 7,000 modelled properties with four commonly used wall constructions. The model considers a wide range of factors to calculate Return on Investment (ROI) on the cost of insulation, including location, design, rental income and construction cost. The results are remarkable:
• In 92% of the buildings analysed, the premium insulation product delivered a positive ROI
• In 40% of the buildings this ROI ranged between 300% and a staggering 1000%.
• A further 18% of the buildings examined exceeded 1000%.
So what does this mean to me?
Well, as an architect it could mean helping to create wealth for your clients, adding to your own value to them. As a developer or property investor it could mean increasing your own ROI. Just think what the possibilities could be in a high yield commercial property.
To fully discuss the results and their implications, this blog series will cover 10 real case studies of different sizes and sectors from across Britain. The next blog, which will be posted next Tuesday, will focus on brick and block construction in central London, where the premium on space couldn’t be higher.
If you can’t wait for the series to unfold and want to find out more, visit the real value of space website and download the whitepaper.
Read the whole of the Real Value of Space Blog series.
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