Our new research reveals half of UK office landlords need help in shaping environmental policies

The great global challenge of the 21^st century is ending climate change — which requires the rapid de-carbonisation of our economies. 

One sector that has more to answer for than most is the office market and the built environment more generally. In fact, it is estimated that the built environment is responsible for an estimated 47% of global carbon emissions. 

It is, therefore, imperative that the office market swiftly becomes a net-zero sector. The pressure to achieve this is mounting on landlords from every direction: tenants are increasingly selecting their workspaces by a commitment to net-zero policies, competition is differentiated by green achievements, and ever-changing regulations set legal requirements for landlords to take action.

As the push towards a net zero office market becomes increasingly multi-faceted and complex, infinitSpace sought to understand the current uptake of sustainable policies, the challenges in implementing and developing them, and the current adoption of energy-saving technologies and infrastructures. 

To find out, in partnership with The Instant Group, we surveyed 250 office landlords with commercial properties in the UK.

The first results from these findings are listed below:

• Almost half of the landlords (47%) believe the office market is falling behind other areas of the property sector when it comes to adopting environmental policies. 
• Equally, 47% said they need help in shaping environmental policies in place. 
• Meanwhile, landlords are facing existential challenges over occupancy, with 84% reporting a vacancy rate of 30% and above.

So, why do landlords think the office market is falling behind? And, with so many calling for additional support, what help is available?

First of all, creating effective sustainable policies isn’t simple. Office landlords are likely to have a detailed understanding of the UK commercial real estate market, however, few are likely to have the technical expertise required to design and implement an effective carbon-cutting strategy.

Part of the challenge is that there are so many tools available. Naming but a few of the options, a landlord could begin reducing overall carbon consumption by introducing sensor-controlled lighting, waste reduction plans, double glazing, paperless access platforms, or introducing flex space. 

Yet, for each option there exist many further sub-options. Additionally, these technologies and infrastructure solutions are constantly evolving, making it difficult to pick the most suitable and cost-effective options. 

Meanwhile, developing sustainable policies requires even greater expertise – an ability to weave together the various complex tools at your disposal in a way that meets targets in a measurable capacity. Without the right knowledge, these targets quickly become arbitrary. 

For example, aiming to reduce energy expenditure on lighting by 50% means nothing without the ability to measure current usage or knowledge of the technologies available and which of these would be implementable across a specific building. It’s no wonder that landlords are struggling. 

What’s more, many measures require a large upfront cost and, in some cases, may also require existing tenants to avoid the office as work is taking place, meaning that landlords also miss out on rent. For larger office landlords, such costs are undesirable but likely manageable. However, for smaller-scale commercial landlords, high costs can prove challenging. 

Ultimately, landlords shouldn’t shy away from the fact that they need support in shaping environmental policies. And the government must play its part by streamlining regulations and standards as much as possible.

Landlords should be encouraged by the fact that they don’t have to take the journey to net zero alone. Workspace providers with expertise in developing green strategies can help landlords design custom-made policies for specific buildings within individual budgets and timeframes. 

Introducing flexspace is a particularly appealing option to landlords because, as well as offering greater floor space efficiency, it is proven to boost the overall value of an entire commercial building. By partnering with flexspace providers, landlords will be able to meet market demand, simultaneously delivering robust environmental policies to boost tenant appeal. In addition, flexspace compliments the implementation of energy-efficient tech and infrastructure, saving day-to-day costs which can quickly pay back the cost of installation. 

In this sense, flexspace providers can transform the design and implementation of sustainable policies from worrying new costs to long-term investments. With a growing number of voices demanding the UK office market transition to net zero, there’s no better time to get started.  And with the right support, equipping workspaces with first-class sustainable policies won’t just be hassle-free but also a rewarding way to make a positive impact and stand apart from the crowd. 

A partnership with infinitSpace offers landlords a tenant-boosting solution with a best-in-class flex space provider, able to implement environmental policies, energy efficient tech and infrastructure, while raising the overall value of a commercial building.