Amid the intensifying race for sustainable space, companies need to weigh their options when leases come up for renewal.
Today’s companies increasingly want to lease low-carbon, high-quality spaces. That’s partly because they’re walking the talk on sustainability commitments and complying with incoming regulations but cost also comes into play — energy efficient spaces can be cheaper to run.
While companies can take many small steps to cut emissions within their leased space, buildings often need infrastructure upgrades to become net zero – and this is generally the owner’s responsibility. Despite the growing economic case for making buildings more sustainable, some owners remain reluctant to invest in improvements.
It’s putting some companies with upcoming renewals and stringent sustainability targets in a tough spot.
The search for sustainable offices, warehouses or other types of real estate can be challenging right now. Supply has not yet caught up with soaring demand, leading to more competition and higher rents for sustainable-certified spaces.
For companies that need to make a call on their real estate, the big question is: do you negotiate with your landlord so they carry out sustainability improvements, invest yourself in exchange for more favorable lease terms or search for a new property in a market where green space comes at a premium?
This guide aims to help you navigate your decision to stay or go, answering questions such as:
– Why is it so hard to find sustainable space?
– How do you decide whether to stay in your current space or move to a more sustainable building?
– What factors should you consider when seeking sustainable space?
– How should you broach conversations with landlords at leasing or renewals?