Occupiers pay more for space that puts staff well-being first

There are already indications that occupiers are prepared to pay a premium for buildings that are more ESG compliant according to CoStar senior market analyst Grant Lonsdale.

Interviewed by Real Asset Insight during COP26 in Glasgow he said the whole industry including occupiers, developers or investors, is focused on sustainability issues as part of wider ESG goals.

“They’re wanting the most energy efficient, the most sustainable buildings to future proof portfolios so they want buildings that have got a high EPC rating, a BREEAM Excellent or Outstanding rating,” Lonsdale said.

Lonsdale added that looking at the direction of travel of occupiers, the buildings they are leaving and going to, “they’re going into the energy efficient ones, the ones that put staff well-being at the forefront.”