Impact real estate: how to influence sustainability
Top 5 tips for landlords
#1 Measure and monitor carbon emissions of the building and work collaboratively with the building management team to carry out necessary alterations and to implement a planned preventative maintenance programme which reduces carbon emissions. This could include changing to a green energy supplier for the whole building.
#2 Work collaboratively with tenants to monitor the tenants’ carbon emissions and agree steps towards a sustainable occupation including changing waste management systems, heating and lighting controls throughout the building and monitoring and reducing water consumption.
#3 Consider changes to your standard form lease to place sustainability at the heart of every obligation including for example; a new approach to dilapidations whereby reusing and recycling are key factors rather than complete strip out of good quality materials and placing obligations on tenants to ensure alterations are carried out with sustainable materials and in a way which does not negatively impact on the environment.
#4 Be open minded and think long term as to additional costs incurred in relation to changes to be made to the building; some may be recoverable via the service charge (working collaboratively with tenants) and some will be investments for the long term viability and value of the building.
#5 And most importantly do not wait! The importance of these issues is only going to increase in the future. If you are ahead of the game you will increase the value of your building and attract prospective tenants.
Bates Wells real estate team are happy to discuss these points with you in more detail and have model clauses ready to use within sustainable leases.
Top 5 tips for tenants
#1 Measure, reduce and monitor carbon emissions setting science-based targets where possible to work towards net zero.
#2 Once you’ve measured your carbon emissions, make changes to help meet the targets set including; reducing waste, changing your energy supplier, review lighting controls and reduce water consumption.
#3 Adopt a reuse rather than replace policy e.g., using recycled materials in fit out and reviewing your supply chain. Negotiate with your landlord to minimise the environmental impact of your end of lease obligations i.e., not stripping out the original fit out.
#4 In multi-occupied premises, tenants can form a collaborative group that meets regularly to coordinate sustainability efforts, share success stories and determine the optimal ways to engage with the landlord and building management team.
#5 Tenants should raise with the landlord their aims for sustainable changes to premises. Although tenants do not own the building or have absolute control over the shared space and services the landlord has an interest in long term viability of the building and may be receptive to making changes to ensure the premises are managed and occupied in a sustainable way.
Align your property, employment and commercial strategy with your ESG agenda and ensure they all fit together as a holistic programme. The occupation of your premises should support this plan and we are happy to discuss with you how to achieve your sustainability goals.
Top 5 tips for real estate developers
#1 Use sustainable resources to build your developments.
#2 Decrease the intensity of property spaces and allow for green areas.
#3 Ensure there are adequate facilities for recycling in the buildings and there is space for it.
#4 Seek to ‘design out waste’ by reducing the energy and water intensity of properties.
#5 Consider appropriate sustainability accreditations for your developments, start the consultation at the design phase and then continue to monitor the emissions of the development. These will ensure sustainability is kept at the heart of the development and that you hold yourself accountable against measurable targets.
Check out our guide on how you can improve the sustainability of your real estate in just 5 steps.