Where can you get the best returns from premium insulation
Over the course of this blog series we’ve seen the significant return on investment (ROI) that premium insulation can deliver through six, very different commercial case studies. Now it’s time to take a step back, using the results from Sweett Group’s spatial mapping report to see if it’s possible to identify locations where optimum ROI’s can be consistently achieved with premium insulation.
Sweett Group’s spatial report looks at the office sector in detail, separating buildings into four groups: city offices, regional offices, office towers and business parks. Maps of minimum ROI were produced for each group at postcode area level detail. To create these maps, rent and yield data was input for each area to calculate the value per sq.m. Where more than one set of data was available for a particular postcode area, the minimum rent and yield values were used. These values were then combined with the cost uplift data (per sq.m) from the main Value of Space research to calculate a minimum ROI percentage for each area.
As expected, East, South and West London postcode areas achieved significant minimum returns across all four maps, as did the Edinburgh and Glasgow postcodes with ROI’s consistently over 500% . Areas within commuting distance of London also performed strongly, whilst the postcodes containing major regional cities such as Manchester, Leeds and Bristol clearly outperformed their neighbours.
The premium cost of space within cities meant that the minimum ROI in the city office map was generally higher than for regional or tower offices. Even greater overall results were visible in the business parks map except for one area (where data was actually available), achieving a minimum ROI of at least 50%, and over half delivering returns of above 100%.
Sweett produced two further maps of ROI percentage for a number of industrial and retail warehouse case studies. Once again, the South East projects were the top performers in the industrial map, although positive ROI’s were shown for all projects. The most remarkable results though were in the retail warehouse sector. Across the nine properties studied, the lowest return was an outstanding 651% in Cardiff with ROI’s reaching as high as 1115% in Edinburgh, 1336% in Leeds and 1761% in Croydon.
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