The biggest challenges
Cost remains one of the biggest barriers and landlords are often expected to fund the upfront capital expenditure required to improve a building, while tenants may be the ones who benefit most directly from lower energy bills, reduced operational costs and a better working environment. That imbalance can make retrofit difficult to underwrite, particularly where the rental uplift is uncertain or where lease terms do not provide enough time to generate a clear return on investment, underpinned by rising costs in an uncertain political landscape.
For occupiers it is equally complex. Businesses want efficient, sustainable, well-managed workplaces that support employee experience and their own sustainability goals. However, they also must manage their own cost pressures. Even where retrofit delivers long term savings, the short-term disruption or additional cost can be hard to justify.