84% Of UK Landlords Report Vacancy Of At Least 30% In Their Office Portfolio
UNITED KINGDOM – A study conducted by Censuswide on behalf of The Instant Group and infinitSpace revealed that over 8 in 10 commercial property landlords in the country registered an average vacancy of 30 percent or more for their office portfolio, reported PropertyWire on Thursday (16 March, SGT).
Worse, 53 percent of the 250 surveyed commercial property owners disclosed that their office buildings are at least 50 percent vacant – a trend that is negatively impacting the overall energy efficiency of commercial assets in the country.
Meanwhile, about 47 percent of the respondents believe that the UK’s office property market is lagging behind other asset classes in introducing and adopting environmental policies. A similar percentage also said “they can’t go at it alone” as they need help in crafting environmental policies, indicating a substantial knowledge gap in office landlords in the country.
Interestingly, the research uncovered a correlation between office occupancy rate and the level of ESG (environmental, social, and governance) adoption. Among office landlords that have imposed a strong set of suitability policies, 56 percent said the average occupancy of their office portfolio is more than 70 percent.
“As a sector, the office market is a large emitter of carbon and its transition to net zero will be essential in reaching the sustainable future the planet so desperately needs,” commented infinitSpace Chief Executive Wybo Wijnbergen.
“But success will be dependent upon understanding and mitigating the challenges landlords face in improving the operations of their buildings. The research partnership we have unveiled today will go a long way to shedding a light on these challenges and where the sector must act.”
Sam Pickering, Executive Director of Sustainability at Instant Group’s subsidiary Incendium, added: “Businesses must adapt – starting with landlords and asset owners. A genuine sustainability strategy requires data transparency in order to influence decision makers that can have a true impact on reducing carbon emissions.”