New research reveals that companies in the United Kingdom are open to paying higher rents for sustainable corporate office spaces as hybrid working gains prominence.
The findings are part of the latest whitepaper from CIM, a property analytics software firm, titled "Tenant Preferences in the UK Office Market." The survey, which involved 200 UK directors and senior personnel responsible for real estate decisions in large office tenants, highlights that while occupancy rates are still below pre-pandemic levels, a significant majority (72%) of respondents anticipate their businesses moving to at least three in-office days per week within the next two years.
The report emphasises that only 39% of respondents expressed high satisfaction with their current office spaces, indicating a need for landlords to better align with changing occupier expectations.
Among the surveyed individuals, a mere 6% were unwilling to pay higher rents for environmentally friendly office spaces.
In contrast, 41% stated a willingness to pay between 10% to 14% more for such spaces.
Additionally, 49% indicated that a property's environmental performance and overall sustainability would strongly influence their choice of office.
Download the whitepaper from https://connect.cim.io/tenant-preferences-in-uk-office-market (registration required).
Casey notes that factors like hybrid working and increasing energy costs have significantly impacted occupier expectations and preferences.
With a greater emphasis on attracting employees back to the workplace, environmentally friendly offices that enhance productivity and well-being have become expected.
Sustainability is also becoming increasingly crucial in talent acquisition and retention, with 89% of respondents considering Net Zero as part of the employee value proposition.
The report reveals that the majority of respondents (55%) expect landlords to provide evidence of a building's commitment to achieving Net Zero.
Other key priorities highlighted in the report include reducing operational and energy costs, cited by 53% of decision-makers as factors that significantly influence their choice of office space.
These concerns indicate the need for the corporate real estate sector to identify tools and strategies to optimize building performance, increase efficiency, and lower emissions and energy expenses.
Casey concludes that creating and maintaining more efficient buildings is vital for improving the overall quality of the built environment and meeting evolving market demands.
He urges corporate real estate managers to explore technologies, such as intelligent monitoring of equipment and utilities, to derive greater value from both new and existing buildings.
Download the whitepaper from https://connect.cim.io/tenant-preferences-in-uk-office-market (registration required).
