November 2024 — In an era where businesses face heightened pressures to meet Environmental, Social, and Governance (ESG) standards, Omega RE shares their top 2025 strategies to help tenants navigate the evolving landscape of commercial real estate. These insights focus on meeting regulatory requirements, optimising workspace for talent attraction, and incorporating sustainable practices to create a competitive edge.
As businesses continue to adapt to changes in employee expectations, environmental regulations, and operational needs, Omega RE presents essential tips to navigate commercial real estate with a focus on both short- and long-term success.
- Real Estate as a Tool for Talent Attraction and Retention
Real estate now plays a critical role in the “war for talent.” Omega RE emphasises creating spaces that reflect culture and flexibility, enhance workplace wellness, and showcase sustainability. Location, design, and workplace experience are essential to recruiting and retaining top talent. For example; Noone, wants rows and rows of desk. Employees are seeking destination office.
- Negotiating Green Leases for Shared Responsibility
Sustainability clauses can benefit tenants but should not place all responsibility on them. Omega RE negotiates fair terms so that landlords share the costs of green upgrades, balancing environmental goals with economic sense. For example; we are witnessing a number of lease clauses stipulating for the tenant to make the EPC improvements at their cost, whilst landlord also taking advantage of the improved market rent.
- Financial Incentives for Green Upgrades
Going green may seem costly initially, but grants, tax benefits, and green loans can offset expenses. The long term benefits of taking advantage of green finances can positively impact a business. We have a number of partners, which can support a businesses green transition. For example; Almost £5 billion of funding is available to help UK businesses become greener as part of the government’s commitment to reach net zero emissions by 2050.
- ESG Integration in Leasing
Environmental, Social, and Governance (ESG) considerations are increasingly important. Omega RE assists clients in meeting ESG benchmarks, navigating regulatory requirements like the EPC ‘B’ rating for 2030, and incorporating workplace wellness initiatives for a holistic approach to sustainability. For example, an industrial unit rated EPC A which has no heating. The lease states that the tenant’s fitout cannot affect the EPC rating. The installation of heating, would have an adverse effect on the rating, therefore does a tenant sit with no heating or risk being in breach of their lease?
- Managing Power Constraints for Green Adoption
As more tenants adopt green technology, power capacity can be a barrier. Omega RE ensures properties meet future power needs by negotiating landlord upgrades or exploring on-site renewables, enabling tenants to scale sustainability without limitations. For example; several landlords are refusing use of fossil fuel to support gas heaters. However, operating the electric space heaters, EV charging points, wipes out the capacity of the electricity that you cant even turn on the office lights.
- Flexibility in Lease Terms
Omega RE advocates for leases that adapt to business changes. Whether it’s a flexible lease structure, built in break clauses, or ESG friendly terms, Omega RE ensures clients avoid hidden costs and get terms that support long term growth and agility. For example; marrying a business objectives with their real estate commitment is key. To avoid, significant capital being locked in for the entire term of the lease on deposit. 3 years is the magic number, to prove a stable business. Subject to meeting the standard means test. The longer the term the more incentives are possible, however, flexible lease terms are typically associated with a premium.
- Data Driven Portfolio Strategy
A strategic real estate approach is essential as business needs evolve. Omega RE supports tenants in using proptech and data-driven solutions to align their portfolios with business goals, from consolidating offices to redesigning for flexible use. For example; With energy monitoring sensors, the company can optimise lighting and heating to reduce energy waste, aligning its office usage with peak times and lowering costs associated with empty spaces.
- Cost-Effective Space Utilisation
Real estate should enhance operational efficiency. Omega RE advises clients on reconfiguring spaces to maximise utility, especially as remote and hybrid work reshapes office layouts. This approach not only improves cash flow but aligns with sustainability goals. For example; Businesses can reduce real estate costs by consolidating floors or even entire buildings where feasible.
- Preparing for New Compliance Standards
With evolving ESG standards, Omega RE helps tenants stay ahead of compliance demands. From carbon reporting to social impact metrics, tenants are well prepared, avoiding costly last minute updates as regulatory standards shift. For example; green clauses, requiring tenants to supply energy consumption, water usage – questioning who should be buying for this data.
- Long-Term Partnerships with Landlords
Omega RE fosters collaboration between tenants, landlords, and local authorities, creating spaces that reflect tenant values and community needs. With a focus on sustainability and growth, these partnerships enable proactive real estate strategies aligned with business missions. For example; the notion to be able to work anywhere, the end user has more choice, therefore it is key to understand the challenges that businesses face and for the built environment to respond.
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Email us at hello@omega-re.co.uk
About Omega RE
Omega RE is a leading commercial real estate business committed to redefining success through social and environmental responsibility. With a Certified B Corporation accreditation and esteemed business awards, Omega RE continues to make strides in the industry. Omega RE is a commercial property advisory firm based on the South Coast, covering the whole of the UK. Providing expert advice to Landlords, Occupiers in the industrial, office and retail markets.
Omega RE is always thinking ‘Outside the Box’ in our advice to clients and the way we do business. We don’t settle for mediocre; we challenge the norm and are dedicated to finding solutions that is best for our clients.
We are a people business, based on strong relationships and partnerships, and we offer a personal level of service.
As the market evolves, we will too adapt to be successful and want the same for our clients. We are committed to finding innovative ways of marketing and how to do things more efficiently.
We will never stagnate.
We are disciplined in everything we do; we take time to understand the situation and set a bespoke strategy for each client. Not one size fits all. We do not cut corners or take shortcuts and our integrity is undisputed.
Providing clients’ a hands-on approach to finding the perfect property; office, industrial, warehouse or retail space to meet business needs and negotiating the best commercial lease terms, is what we do best.
We come to work because we’re passionate about providing expert, innovative, independent advice to clients. We want to help businesses navigate the complexities of Commercial Real Estate.
To find out more visit: www.omega-re.co.uk/
Contact information
For further information and interviews please contact us on:
T: +44(0)2382 355 799 E: hello@omega-re.co.uk
