ESG measures are at the top of tenants’ concerns, followed by the implementation of high-tech solutions and the creation of communities – reveals a survey conducted by FORTIM Trusted Advisors, a reference company in the market of real estate consulting services, commercial and industrial space rental and residential management.
“Following the survey, it emerged that in first place, voted by 75% of all respondents from tenant companies, is the intention to adopt ESG measures, followed by the implementation of high-tech solutions. These two criteria are strongly associated with improving the quality of office space and activity. Tenant companies are concerned about ESG conditions, the creation of communities within the building, the organization of charity events, new spaces for recreation and spending breaks at the office in a pleasant environment. Due to inflation, however, concerns such as rent indexation and utility costs have arisen, but to a lesser extent than ESG”, says Costin Nistor, Managing Director of FORTIM Trusted Advisors, member of the BNP Paribas Real Estate Alliance.
Costin Nistor – Managing Director Fortim Trusted Advisors BNP Paribas Real Estate
According to the survey carried out by FORTIM Trusted Advisors, 41.7% of office tenants rated a very high probability and 33.3% a high probability of starting ESG procedures as part of the development plan in 2023. The questions were evaluated with a scale of one to five, where 1 represented the least likely cue and five the most likely cue.
“Most office building owners only think about E – Environmental, which has a direct impact on lowering energy costs and protecting the environment. We believe that we must take care of all these directions, and more of S-Social, the integration of communities in companies and in the building, and G-Governance, which is more about property management services and their digitalization. ESG must not only be a PR trend in the field, but a differentiator at this moment and a normality in the near future, for all office environments”, declares Costin Nistor.
Another question in the survey was about the intention to change office space, with respondents opting to keep the space in which they operate. At the moment, according to the data, tenants in buildings managed by FORTIM Trusted Advisors do not want to extend the work from home system any further and are making efforts to bring employees back to the office.
Next on the list of concerns for office tenants are three possible reasons for concern going forward. About half of the respondents are concerned about the indexation of rent and utility costs and 40% about the evolution of the service tax in 2023.
“Companies that want to bring added value to employees will always opt for well-positioned buildings with low energy consumption, many tending towards zero carbon emissions, which offer better conditions, with modern design, optimal compartments, facilities and smart equipment. Owners of office buildings older than 10 years must understand that in order to transform them into sustainable spaces, a long-term strategy is needed, with budgets allocated for investment in the renovation of common areas, creating a community that benefits from the facilities offered, changing or upgrading the building management system and obtaining a green certification. On the contrary, there is a risk of losing current or potential tenants, interested in having working environments aligned with international standards”, estimates Costin Nistor.