A leading commercial property expert is warning that forecast increases in gas and electricity bills will not only hit homeowners, but will lead to a major shake-up in the commercial property sector.
Philip Morton, Senior Director, CBRE Bristol, “This represents a huge increase for businesses and also puts pressure on how and where office space is used. Properties with green credentials, that are cheaper to run, will become increasingly attractive. It also adds to the trend for downsizing in terms of total space occupied. This can save running costs, but there are hidden costs in any move and possible loss of productivity if staff are squeezed into inadequate office space.”
As well as an increase in costs, Mr Morton explains that landlords may need to change the way that charges are made, “Currently utility charges are typically included within a service charge as part of the rental agreement, and these costs can already make-up around 40% of the service charge.
“With forecast increases of up to 8% we may see a move to a new way of charging with utility charges being separated from other charges, so there is greater transparency.”
Last month CBRE Group announced the launch of the Real Green Research Challenge (RGRC), an international, four-year, US$1 million commitment to fund leading-edge sustainability research and innovation relating to commercial property to encourage new ideas in usage and energy savings.
