Commercial landlords are working on making mandatory and optional sustainability improvements in order to stay ahead of the competition, an infinitSpace report suggests.

The green agenda has long been on both residential and commercial developers’ minds, and competition is ramping up to be in for a chance of selling on the eco-friendly bandwagon as tenant and buyers become more eco-aware.

According to Facilities Management Journal: “The survey of 250 commercial landlords with offices in the UK found that 30 per cent of office landlords have a sustainability strategy in place, while a further 42 per cent have individual sustainability policies in place, but no overarching strategy.”

The article goes on to say that 41% of landlords stated competition as their driving factor for ‘going green’ while 37% stated a desire to reduce climate change.

Competitive Advantage

The reason behind staying competitive is simply, to attract tenants – those of which may have their own green initiatives.

infinitSpace CEO, Wybo Wijnbergen said: “Office landlords are clearly finding “green” inspiration from a variety of places. However, it’s notable that the two greatest motivators are market competition and an ethical desire to play a role in reducing climate change, demonstrating the importance of sustainability as both a strategy for commercial success and a moral imperative.”
“Many landlords will also note the connection between sustainability and occupancy. Increasingly, environmentally conscious businesses are led in their decisions by a commitment toward sustainability, including where they work. So, landlords must ensure they have a compelling sustainability strategy – with competition in the market so high, potential tenants will smell greenwashing from genuine action. Fortunately, landlords don’t have to face sustainability challenges on their own; workspace operators can help guide net-zero transformation in a way that is commercially viable both over the short and long term.”

This trend of going green to bolster against the competition is a property industry-wide movement. All property development must have a sustainability element by law as set out in Environmental Impact Assessments as legal requirements for planning applications. The competitive elements however take this one step further, with developers, and landlords of prebuilt properties, also considering insulation and heating optimisation, the use of sensors and LED lighting, renewable energy sources (i.e. solar panels), and installing EV charging units.

Property Industry Responsibilities

As Net Carbon Zero Programme Manager for the Government Property Agency, Louisa LeRoux said: “The property industry has a huge role to play in reducing carbon emissions and maximising energy efficiencies as the world tackles climate change.”

Onyx CEO, Dan Richards comments: “Despite industry concerns, property developers, private and commercial rentals and HMOs are still in full swing with buyers and tenants demanding more and more from their commercial spaces and homes. As such, developers and landlords are going the extra mile to win business by taking a green approach to their planning and refurbishments.”
“The Government is working to achieve Net Zero by 2050, and with private enterprises pushing for sustainable properties, regardless of their agenda, this is a win win for everyone – most importantly the environment!”

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