Technical solutions to decarbonising subprime offices exist. So do many of the funding mechanisms. But without a broad, aligned understanding across stakeholders – from tenants and lenders to landlords and investors – these solutions stall.
That’s why our first call to action is to launch coordinated education campaigns across the value chain. These should aim to demystify retrofit benefits, quantify savings and articulate long-term value creation in language that resonates with each audience.
Many subprime tenants care deeply about sustainability but focus first on operational cost. Without education and transparency, value-adding interventions risk being misunderstood or dismissed. As Harry Neal, director at St Anselm – an independent property company that invests in, manages and develops a range of high-profile assets (including a number of thoughtfully refurbished London offices), put it:
“Particularly in the secondary space, occupiers look at that all-in cost. If you’re developing a brand-new shiny building, and you have a host of blue-chip tenants interested with strong sustainability credentials and internal requirements, you can have a happy marriage in that space. But in the secondary space, although tenants still like to see interventions to improve energy performance, they also want to see a saving and how they can look to reduce their costs.”
Kian Siabi, director and service office specialist at Making Moves London, a London office consultancy that represents office occupiers, added:
“In the current market, occupiers are highly cash-flow conscious. They often need to avoid the large, upfront capital expenditure required for a fit-out and therefore look for landlords who can amortise those costs into a lease. This is particularly true for high-growth, smaller tenants who also need maximum flexibility. We are increasingly seeing leases for just 24 or 36 months, as these tenants don’t want to commit to a long-term space they may quickly outgrow. The landlords who will succeed in this new environment are those who adapt their offerings to provide these flexible, turnkey solutions.”
Intermediaries, particularly agents, can play a critical role in facilitating this process. One novel approach suggested is for agents to proactively research and identify specific subprime buildings facing retrofit challenges, before engaging with landlords well ahead of upcoming lease events and, if possible, before they start to foot the bill for sustainability improvements. By presenting prospective tenants, agents can help landlords future-proof their developments – securing tenants through agreements for lease and safeguarding an income stream post retrofit to protect both long-term value and a building’s environmental performance. This pre-emptive engagement creates a more tailored offering that meets both landlord and tenant needs.
The same applies to lenders. The rise of ESG-linked financing is significant, but the knowledge gap remains wide – especially among smaller property owners. One finance sector participant stressed the importance of proactive engagement:
“We try to position around education – road mapping the changes, the legislation, the risks, and everything that comes down the tracks to give clients that value-add experience on top of typical banking products. It’s about bringing everyone together: landlords, tenants, investors. Because we’re seeing the shift – green buildings are finally commanding a premium. That wasn’t the case just a few years ago.”
Education isn’t just about environmental benefits – it’s also about risk mitigation, asset value preservation and compliance planning. A subprime office with a clear retrofit roadmap is far more attractive to investors, funders and occupiers.
That’s why we’re calling on government, industry bodies, lenders and major landlords to collaborate on targeted engagement campaigns – practical, accessible, and focused on the “why now” and the “how.” From SME landlords to public sector tenants, knowledge is the most scalable tool the industry has at its fingertips to align the market and accelerate uptake.
Because when people understand the upside, they’re far more likely to invest in it.
