Collaboration between occupiers and their landlords
A growing number of companies are now collaborating more with their landlords on improving their office's ESG impact.
This is perhaps due to a realisation of the need to implement change, but also because collaboration could be the most cost effective way to do so. We wanted to explore the importance of the component parts of where they are working together.
More businesses are collaborating with their landlords on environmental issues, such as improvements to M&E and other services (57%), than on social or governance issues. However, social issues scored highly. 54% said they are collaborating on wellbeing facilities such as gyms and cafes. This reflects our findings that businesses want their office space to be attractive and welcoming to staff. For some industries, such as the financial sector, addressing social issues (58%) appears to be even more important than environmental concerns (52%).
Governance issues continue to lag both those related to the E and S of ESG but still scored a comfortable 38% overall. Governance also appears more important to the larger companies in our survey which is not surprising given they are likely to face more regulation.
This is perhaps due to a realisation of the need to implement change, but also because collaboration could be the most cost effective way to do so. We wanted to explore the importance of the component parts of where they are working together.
More businesses are collaborating with their landlords on environmental issues, such as improvements to M&E and other services (57%), than on social or governance issues. However, social issues scored highly. 54% said they are collaborating on wellbeing facilities such as gyms and cafes. This reflects our findings that businesses want their office space to be attractive and welcoming to staff. For some industries, such as the financial sector, addressing social issues appears to be even more important than environmental concerns.
Governance issues continue to lag both those related to the E and S of ESG but still scored a comfortable 38% overall. Governance also appears more important to the larger companies in our survey which is not surprising given they are likely to face more regulation.
The change in the landlord and tenant relationship to one that is more collaborative is positive. It’s reassuring to see that only 9% of businesses said they were not collaborating with their landlords on ESG issues at all.
What areas, if any, is your organisation working collaboratively with your landlord to bring about changes in your office ESG issues? (Select all that apply).
Businesses are aware of government landlord and tenant legislation – and give a vote for “security of tenure”.
96%5 of respondents said they understand the Government consultation on security of tenure for commercial leases with 94%6 saying it is important for their organisation to have a statutory right to renew their current lease on similar term.
These figures do not reflect the current situation in office leasing, as a large proportion of leases are excluded from the security of tenure provisions. The figures could however reflect that in changing economic times the “right to renew/remain” is considered important again, particularly because it will usually cost more to move than to stay put.
5 Combining answer options “Understands fully”, “Understands most of it” and “Understands some of it”.
6 Combining answer options “Very important” and “Somewhat important”.
96%5 of respondents said they understand the Government consultation on security of tenure for commercial leases with 94%6 saying it is important for their organisation to have a statutory right to renew their current lease on similar term.
These figures do not reflect the current situation in office leasing, as most leases are excluded from the security of tenure provisions. The figures could however reflect that in changing economic times the “right to renew/remain” is important, particularly because it will usually cost more to move than to stay put.
5 Combining answer options “Understands fully”, “Understands most of it” and “Understands some of it”.
6 Combining answer options “Very important” and “Somewhat important”.