High demand for eco-friendly workplaces
An interesting article from EG highlighting the spike in prime office rents for those spaces offering the best sustainability credentials.
With ESG now at the forefront of most companies’ agendas the requirement for the best green office space has led to what EG reports as, occupiers jostling for “best-in-class space that performs strongly on sustainability grounds, supporting corporate goals, and offers wellness and amenity-rich space to support their employees”. As a result, the increasingly competitive office market has led to “an average rise of around £2.50 per sq ft between the second and third quarters of the year”.
Whilst there is high demand for new build office space, it will be interesting to see what impact there is on the second-hand space on offer in the market and whether there will be an increased push to re-fit these spaces to meet the demand for eco-friendly workplaces that meets companies’ sustainability criteria. The EG report does suggest that in addition to the increase in demand for new space, there has also been a “notable uptick in take-up of second-hand space, indicating a more balanced recovery across the market”.
This also aligns with the commentary my colleagues heard from the British Council for Offices conference attended last week, where there was a general consensus that refurbishing buildings was a more carbon conscious method than demolition and rebuilding.