This blog was written by Thom Kepel, technical manager and BREEAM In-Use expert and Iris Kampers, ESG advisor at Savills in the Netherlands.

The landscape of the real estate sector has changed as a result of the pandemic, the guidelines from the COP26 summit, high energy prices and the growing focus on ESG targets. However, what does this mean for property managers and how can they stay ahead of the changing demands of owners and users?

In the office market, there has been a fundamental shift in work patterns and the way buildings are used, which has led to a change in the way property management is approached. Hybrid working, the war for talent and increased amenities such as showers and bicycle parking, are factors that are now taken into account in overall property management. However, the largest concern is the race to become 'Net Zero'.

A BREEAM, WELL certificate or the Energy Performance Certificate (EPC score, BENG) plays an important role in creating a sustainable building. However, a certificate says little about the actual performance of the building and, in practice, these sustainable buildings can often still have a large footprint. It regularly happens that owners or occupiers do not understand why the footprint is still higher than what you would expect from the theoretically sustainable location.

Of course, energy consumption depends on the unique characteristics of a building, such as its structure but, also on how the occupier uses the property. As a good tenant, it is also the responsibility of the occupier to make sure, for example, that the lights are not switched on unnecessarily or that requirements regarding comfort are also in line with the climate goals we have to achieve together.

Increasingly, the work of a property manager consists of monitoring and analysing energy data to determine a building’s progress towards 'Net Zero' or Paris Proof Roadmap, for example using the CRREM tool or the WEii score. Based on this data, it is important to consult with the owner and occupier to prevent energy waste.

So, we need to work together to maximise ESG scores with an approach that focuses on sharing data and creating green leases that support both owners and occupiers in achieving their goals. This will ensure greater transparency and well-defined agreements to move forward together. If a common goal is set, which suits both the owner and the occupier, it is more likely that a sustainable building will actually be used sustainably and that ESG targets will be met.

This collaboration is increasingly facilitated by the right manager: acting to keep the carbon footprint low, meeting social objectives and striking a balance between making improvements and the costs involved. The manager plays a crucial role in bringing together the various interests, and to act in time if a building is not being used energy efficiently.