Costs, talent attraction and retention, and sustainability requirements are among key challenges facing office landlords and tenants, reveals Office Asset Optimisation for Tomorrow, a report from global real estate services firm Cushman & Wakefield. Structural change that previously swept across retail and industrial assets has coincided in the office sector with a global economic slowdown, high inflation and interest rates. Cushman & Wakefield notes that asset optimisation must now go beyond focusing on building systems to maximise performance – it also requires ensuring a positive interpersonal experience in the workplace.
Faced with changing work patterns, new employee expectations and cost pressure, tenants tend to prioritise office quality over quantity. They are also interested in sustainable solutions and various amenities to foster employee comfort, health and well-being. The differences between their priorities now and in 2010 well illustrate the scale of challenges facing employers and, consequently, property landlords and managers. All this is happening against the backdrop of a 10-20% increase in EMEA operating costs and office fit-out costs in Warsaw averaging EUR 1,250 per sqm[1],”
says Grzegorz Dyląg, Partner, Head of Asset Services Business Space, Asset Services EMEA, Cushman & Wakefield.
ESG risks and opportunities
We tell our clients that investments in improving ESG indicators, including increasing energy efficiency and reducing carbon footprint, should not be seen only as an effort to ensure compliance and sustainable certification. They are likely to result in additional financial gains through better operational efficiency, tenant and investor attraction and retention, while preparing assets for future compliance requirements,”
explains Katarzyna Lipka, Head of Strategic Consulting and ESG, Cushman & Wakefield Poland.
The first step is to establish how a building performs against market standards and practices for sustainable projects or the criteria of the EU’s Taxonomy, the guidelines of the revised EPBD, which was adopted last month, as well as the requirements of tenants regarding their ESG goals and policies. Such analysis will reveal where improvements are required and will make it possible to plan capital expenditures to bring assets in line with compliance and net-zero standards, and to take them into account in cash flow modelling,”
adds Katarzyna Lipka.
To understand the changing needs of tenants
The scale of changes facing a growing number of office buildings may seem overwhelming at first sight. Optimisation must be considered in terms of both technologies, sustainability, leasing structures, tenant experience and integration with local communities. The good news is that Cushman & Wakefield has a complete set of skills, expertise and tools to assess any building from the perspective of its owner, an investor and tenant, to outline a repositioning roadmap and to plan and quantify specific changes,”
concludes Grzegorz Dyląg.
[1: Office Fit-out Guide: https://www.cushmanwakefield.com/pl-pl/poland/insights/office-fit-out-cost-guide ]
About Cushman & Wakefield
Cushman & Wakefield (NYSE: CWK) is a leading global commercial real estate services firm for property owners and occupiers with approximately 52,000 employees in nearly 400 offices and 60 countries. In 2023, the firm reported revenue of $9.5 billion across its core services of property, facilities and project management, leasing, capital markets, and valuation and other services. It also receives numerous industry and business accolades for its award-winning culture and commitment to Diversity, Equity and Inclusion (DEI), sustainability and more. For additional information, visit http://www.cushmanwakefield.com.