Office building owners and managers can save money and cut carbon emissions while adapting to modern, flexible work patterns; a new joint study has revealed.
Globally integrated real estate group Lendlease, global sustainable consultancy firm Arup, and Schneider Electric, a leader in the digital transformation of energy management and automation, detail innovative strategies to add commercial real estate (CRE) value in a new white paper titled, ‘Get more from your core investments: How faster fit-outs can drive higher returns for commercial properties’. It shows how to balance flexible occupancy opportunities with addressing sustainability challenges.
The urgency of this initiative is clear. "As a recent McKinsey report points out, buildings account for almost 40% of global carbon emissions,” notes Estelle Monod, Global Buildings President at Schneider Electric. “This reality requires immediate action, especially as CRE companies navigate stringent environmental regulations, shifting tenant and investor expectations, and a volatile market landscape. We recognise these pressures and are committed to offering solutions that facilitate this transition.”
As key players in the CRE market, Lendlease, Arup, and Schneider Electric combine their expertise to propose practical solutions for the industry's evolving demands. The study focuses on leveraging technological advancements to create adaptable building services that reduce waste and improve environmental performance.
Andy Hodgson, Global Advisory Services Leader at Arup, comments, “Trying to cut carbon while also tackling fluctuating office occupancy with post-COVID work patterns is a major challenge for the commercial office real estate market. But with a new approach to building construction, a flexible design can bring financial benefits alongside unlocking shorter and more flexible leasing arrangements.”
Traditional building design and construction methods often struggle to address sustainability and carbon accounting. In response, Schneider Electric, Lendlease, and Arup collaborated on a practical guide that illustrates how an adaptable approach can help strike a balance between flexible occupancy and reduced carbon emissions with a solution that enhances building adaptability and reduces material waste.
The white paper introduces a new method for designing and implementing integrated building services within commercial office space. This method was applied to one floor within a major office tower building in Sydney, Australia, and demonstrated tangible benefits.
Modelled scenarios for a single building show the potential to generate significant lifecycle cost reductions, additional revenues, and savings of more than 1,500 tons of carbon dioxide over 30 years. Andy Hodgson, Global Advisory Leader at Arup, highlighted the financial advantages: "Reducing costs (which can lead to higher rental value) and shorter vacancy periods were key considerations in the model. Interestingly, the current model doesn't account for energy savings, yet the solution inherently provides this additional benefit."
For landlords, the benefits extend beyond financial gains. Advanced apps and automation offer improved space utilisation and increased tenant comfort. Tenants also gain insights into space usage and can adapt their environment for maximum efficiency and comfort.
Download the complete white paper here to explore this innovative project’s full findings and implications.
Related resources.
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Get more from your core investments: How faster fit-outs can drive higher returns for commercial properties. A. Radja, T. Boorman, G. Ahuja, D. Zhu, R. Kempton, S. Van Dolah-Evans. May 2024. https://go.schneider-electric.com/WW_202406_Get-more-from-your-core-investments-how-faster-fit-outs-can-drive-higher-returns-for-commercial-properties_Arup-Lendlease_EA-LP.html
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Climate Risk and the Opportunity for Real Estate. B. Boland, C. Levy, R. Palter, D. Stephens. February 2022. https://www.mckinsey.com/industries/real-estate/our-insights/climate-risk-and-the-opportunity-for-real-estate
Key Facts:
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Schneider Electric, Lendlease, and Arup collaborate to explore sustainable, adaptable building services to boost commercial real estate returns.
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Study shows the potential to generate up to AU$1B in additional revenues and save over 1500 tons of CO2 over 30 years.
About us:
About Schneider Electric
Schneider’s purpose is to create Impact by empowering all to make the most of our energy and resources, bridging progress and sustainability. At Schneider, we call this Life Is On.
Our mission is to be the trusted partner in Sustainability and Efficiency.
We are a global industrial technology leader bringing world-leading expertise in electrification, automation, and digitisation to smart industries, resilient infrastructure, future-proof data centre, intelligent buildings, and intuitive homes. Anchored by our deep domain expertise, we provide integrated end-to-end lifecycle AI-enabled Industrial IoT solutions with connected products, automation, software and services, delivering digital twins to enable profitable growth for our customers.
We are a people company with an ecosystem of 150,000 colleagues and more than a million partners operating in over 100 countries to ensure proximity to our customers and stakeholders. We embrace diversity and inclusion in everything we do, guided by our meaningful purpose of a sustainable future for all.
About Arup
Dedicated to sustainable development, Arup is a collective of 18,000 designers, advisors, and experts working across 140 countries. Founded to strive for humanity and excellence in everything we do, we collaborate with our clients and partners, using imagination, technology, and rigor to shape a better world.
About Lendlease
Lendlease (ASX:LLC) is a leading integrated real estate group with core capabilities across investments, development and construction. Our vision is to create the best places.
We are headquartered in Sydney, Australia, and listed on the Australian Securities Exchange.
Contact details:
schneider@iconagency.com.au
