Teaming up: occupier and landlord collaboration
Last year, we noted a growing number of occupiers were working in collaboration with landlords to reduce their ESG impact. In 2026, this has stretched further.
What, if anything, do you think will be the biggest threats to your business in the next 12 months?
Cost considerations are paramount, of course.
When asked to name their top three business threats for 2026, occupiers point to rising property costs and service charges (26%), higher inflation/interest rates (22%) and increasing employment costs and risks such as employee rights legislation, and National Insurance hikes (21%).
In reconsidering how they use their space, 11% of occupiers say reducing rent and other fees is a key priority.
Even in an era where the cost of business seems higher and adds a new dynamic to property strategy, organisations are proactively working with their landlords to find a mutually beneficial way forward. Perhaps most importantly, there are savings to be made by doing so, and this may be a major reason why the proportion of occupiers not collaborating with their landlords has fallen from 9% in 2025 to just 2% in this year’s survey.
Just 20% intend to move to a new office in a cheaper location to mitigate 2026’s expected rise in commercial costs. Instead, 24% are seeking to re-gear their lease to make cost savings; 26% want to sub-let to or share with similar organisations. A further 24% see landlord liaison as a way to reduce the environmental impact and cost of their office.
But most of all, 31% of occupiers will use the opportunity to reconfigure their space in a bid to diversify, increase capital, and cover additional costs.
Collaboration is apparent across other aspects. Nearly a quarter (24%) of occupiers see landlord liaison as a way to reduce the environmental impact and cost of their office. These ESG-related changes range from complying with carbon-related governance (55%) to introducing gyms, cafés, and other social areas into buildings (53%).
Yet this looks to be just the start of closer collaboration – or, at least, negotiations – between occupiers and landlords.
Greater collaboration in a changing lease landscape
In this Parliament, the UK government is set to bring forward legislation that would ban upwards-only rent reviews. In essence, this means commercial leases will be subject to potential decreases if market rents fall.
Some 70% of occupiers are aware of the legislation and believe it will benefit them. Substantially more (83%) would be willing to accept a longer lease than they currently have, on the basis that they would pay the market rate for the duration.
Conversely, 22% suggest a ban would have a negative effect on their organisation. In addition, 16% see the flexibility of a short-term lease as vital.
Greater collaboration between landlords and tenants is a positive. So too is the increased use of external consultants to smooth the process and help occupiers avoid pitfalls lurking within leases. Investment in third-party expertise is another sign many occupiers are thinking further ahead about their office space and the terms of their tenancy agreements.
Are you aware of the proposed changes to ban ‘upwards only’ rent reviews?
I think it will be beneficial for me as an occupier
I think it will be detrimental to me as an occupier
I don’t have a rent review so it's not relevant
No
