Environment, social and governance (ESG): three words that are shaping the cultures and practices of business across the UK. How are they changing the decisions businesses make about their offices? And how is ESG impacting relationships between occupiers and landlords?
Much has changed since we last surveyed office-based businesses a year ago.
The war in Ukraine, escalating energy costs, and the rise of inflation all bring new concerns around the cost of doing business. Meanwhile, hybrid working seems to have become established, while some industries are trialling a four-day working week.
Organisations also understand that environmental concerns need to be high on their agenda. But many remain unsure of what this means in practice.
We’ve teamed up with Markettiers to survey more than 500 senior decision makers with a responsibility for office occupancy choices. You can read their thoughts on office requirements, and areas of opportunity and concern.
On top of this, we’ve summarised forthcoming environmental legislation, particularly MEES (Minimum Energy Efficiency Standards) and the potential impact of these changes on your office.
Read the report to learn how offices are changing
Key findings
- Over 75% of UK businesses have changed the amount of office space they occupy in the last 12 months or are planning to change it in future
- Among businesses, there’s increasing interest in flex space and reduced interest in long-term leases
- Unsurprisingly, rising costs and inflation are named as two of the main issues businesses are worried about
- Many businesses remain unclear about new environmental legislation (MEES) – despite government deadlines approaching. Just under a third (32%) of businesses said they were concerned that they don’t know whether their office will be MEES compliant from April 2023
- There’s a willingness from occupiers to share with landlords the cost of making environmental improvements – but often this willingness comes with caveats
- There’s desire for greater collaboration between landlords and tenants over sustainability issues.
Get the full picture in our new Office Occupiers report
“Green leases are becoming increasingly common but there’s currently no model form of clauses. This means that your intentions need to be clearly drafted. We can help to ensure that your goals are balanced with your landlord’s requirements and that you understand the cost and practical impact to your business. Collaboration at an early stage is vital.” William Scott, Partner, Real Estate.
