March 15, 2023
Office market continues to fail on environmental standards …. say landlords
A new survey that explores the state of sustainability within the UK office market, jointly commissioned by infinitSpace and The Instant Group, claims that the office market is falling behind on environmental policies. The poll of 250 landlords suggests that almost half (47 percent) of landlords believe the office market is lagging behind other areas of the property sector in implementing/adopting environmental policies. The same number say they can’t ‘go it alone’ with 47 percent of landlords agreeing they need help in shaping environmental policies. At the same time, 84 percent of landlords report a vacancy rate of 30 percent and above as average among their office building portfolio.
These insights, which come from a survey of 250 commercial landlords with offices in the UK, are the first to come from a new research partnership between infinitSpace, the creator of white-label, tech-enabled, flexible workspaces, and The Instant Group, the largest global marketplace for flexible workspace solutions.
The research, conducted independently by Censuswide, revealed a significant knowledge gap in the capabilities of office landlords to shape environmental policies with almost half agreeing that they need help. It also uncovered a pervasive belief that the workspace market is moving too slowly in implementing and adopting environmental policies with 47 percent of landlords believing the office market is lagging behind other areas of the property sector compared to 20 percent who do not.
The research also revealed the poor state of occupancy across UK offices, itself a major factor in the overall energy efficiency of a commercial building, as 84 percent of landlords reported occupancy as less than 70 percent and 53 percent said their offices were half-empty or less.
With all 250 landlords asked to identify the current adoption of sustainability policies in place across their office portfolio, the research uncovered a correlation between occupancy and level of sustainable practice. Of those with the most robust set of suitability policies, 56 percent had offices with an occupancy greater than 70 percent.
Wybo Wijnbergen, CEO of infinitSpace, said: “As a sector, the office market is a large emitter of carbon and its transition to net zero will be essential in reaching the sustainable future the planet so desperately needs. But success will be dependent upon understanding and mitigating the challenges landlords face in improving the operations of their buildings. The research partnership we have unveiled today will go a long way to shedding a light on these challenges and where the sector must act. Expect much more to come, the first few results we have released today barely scratch the surface. The real estate sector can play a significant role in safeguarding the future of our planet – now is the time to execute.”
Sam Pickering, Executive Director of Sustainability at Incendium (part of the Instant Group) said: “The corporate sustainability landscape is rapidly changing due to the urgency of the climate crisis, stakeholder pressure, expanding regulations and consumer-driven transparency. Businesses must adapt – starting with landlords and asset owners. A genuine sustainability strategy requires data transparency in order to influence decision makers that can have a true impact on reducing carbon emissions. Our intention with research initiatives such as this one is to forge a strong foundation for sustainable outcomes for all.”