Landlords in Europe must beef up their annual 1-2% rate of office refurbishments to about 5% very soon to meet carbon reduction targets, Bill Page, head of EMEA offices research at Jones Lang LaSalle, told PropertyEU at Expo Real. Even in the City of London - one of the most advanced markets in Europe - the annual refurbishment rate currently stands at only 2.7-2.8%.
Landlords in Europe must beef up their annual 1-2% rate of office refurbishments to about 5% very soon to meet carbon reduction targets, Bill Page, head of EMEA offices research at Jones Lang LaSalle, told PropertyEU at Expo Real. Even in the City of London - one of the most advanced markets in Europe - the annual refurbishment rate currently stands at only 2.7-2.8%.
Sustainability remains the most pressing issue facing the office sector today and over the next 10 years, according to 83% of respondents to JLL’s Offices 2020 study. The report maps the latest trends and most significant issues facing the office market. A key finding is that the combination of sustainability, technology and workplace practice will fundamentally shorten building lifecycles, creating a huge demand for refurbishment.
For the 12-month study, JLL polled 150 experts across Europe and the Middle East in order to identify and prioritise the top 10 future issues perceived as most pertinent to them. JLL launched the Office 2020 programme at a client event at Expo Real last week.
The study further found that funding and finance will remain constrained and creative partnerships and alternative funding sources will be increasingly required. Landlord-tenant relationships will evolve firmly towards the occupier, with 80% of real estate executives believing occupiers will become more powerful with landlords and investors having to meet their increasingly detailed demands for accommodation and lease flexibility.
