Globally integrated real estate group Lendlease, global sustainability consultancy Arup and Schneider Electric, a leader in the digital transformation of energy management and automation, detail innovative strategies to increase commercial real estate value (CRE) in a new whitepaper titled “Getting more from your core investment: How rapid fit-out can boost commercial real estate returns”. The whitepaper shows how to balance flexible occupancy opportunities with addressing sustainability challenges.
“As a recent McKinsey report noted, buildings account for nearly 40% of global carbon emissions,” noted Ester Monod, president, Global Buildings, Schneider Electric. “This reality requires urgent action, especially as CRE companies navigate stringent environmental regulations, changing tenant and investor expectations, and a volatile market environment. We recognize these pressures and are committed to delivering solutions that facilitate this transition.”
Leading players in the CRE market – Lendlease, Arup and Schneider Electric – have pooled their expertise to propose practical solutions that meet the evolving demands of the industry. The study focuses on leveraging technological advances to create adaptable building services that reduce waste and improve environmental performance.
Andy Hodgson, global advisory services leader at Arup, said: “Reducing carbon emissions whilst managing fluctuations in office occupancy rates in a post-COVID world of working poses major challenges for the commercial office real estate market. However, with new approaches to building construction, flexible design can enable shorter and more flexible lease agreements whilst delivering financial benefits.”
This paper presents a new way to design and implement integrated building services within commercial office spaces.
Modelled scenarios for a single building show the potential to generate significant lifecycle cost savings, additional revenue and carbon savings of over 1,500 tonnes over 30 years. Andy Hodgson, global advisory leader at Arup, highlighted the financial benefits: “Reduced costs (which can lead to increased rental values) and reduced vacancy periods were key considerations in the model. Interestingly, the current model does not take into account energy savings, yet the solution inherently delivers this additional benefit.”
For landlords, the benefits go beyond financial gain: advanced apps and automation improve space utilization and occupant comfort, while empowering occupants to understand how their space is being used and adapt their environment for maximum efficiency and comfort.
To learn more about the full findings and impact of this innovative project, download the full white paper here.