Office landlords with older buildings implement greener energy efficiency measures to attract eco-conscious companies

Office landlords planning to refurbish older stock should aim for green eco credentials if they want to remain competitive and improve rents, according to latest insights.

Property consultancy Vail Williams sounded the call to action in its ‘health check’ report on the office market in the Solent region, based on data for the first half of this year.

Russell Miller, Regional Managing Partner, South Coast, said: “Occupiers continue to prioritise quality as they work to bring staff back to the office, and ESG credentials remain front and centre of decision-making.

“Landlords planning refurbishments should aim for BREEAM Excellent certification and EPC A ratings [the highest energy efficient rating] to remain competitive and improve rents.”

He cited offices which drew in companies following refurbishments that reduced carbon emissions through improved energy efficiencies.

They include Twenty3 Brunswick Place in Southampton, which has set a new benchmark for sustainability in the port city by being turned into one of the region’s most eco-friendly workplaces.

Russell said: “The success of schemes like Twenty3 Brunswick Place highlights this trend.

“There have been several high-quality refurbishments over the last 18 months elsewhere regionally, including Portsmouth, Bournemouth, Chandler’s Ford/Eastleigh, Solent Business Park at Whiteley and cathedral cities like Winchester.

“We expect office market momentum to continue through the second half of this year, with rising demand and limited supply adding an upward pressure on rents.

“This is encouraging news for investors, providing a stronger case to invest in new and refurbished office stock – particularly high-quality, sustainable space meeting the expectations of the modern occupier.”

According to the World Economic Forum, buildings account for 39% of global energy-related carbon emissions; retrofitting an existing building emits 50% to 75% less carbon than constructing the same building from scratch.

VW Insider’s report also highlighted how demand has been particularly strong for sub-5,000 sq ft Category A or A+ space, especially in well-connected areas such as Chandler’s Ford/Eastleigh, which combine transport links with ample on-site parking.

In central Southampton, office demand remains strong, aided by the recent regeneration efforts.

Approximately 185,000 sq ft of office space was let across the South Coast in the first six months of this year – a figure that suggests a short-term increase compared with the first half of 2024 as occupiers adopt a more cautious stance in response to economic and geopolitical uncertainties.

April, May and June delivered 75,000 sq ft of take-up – broadly in line with seasonal averages – with standout deals including a 24,000 sq ft letting at 1000 Lakeside Building, Portsmouth, and two lettings at Twenty3 Brunswick in Southampton, spanning a cumulative 26,000 sq ft.

In Portsmouth, activity continues to centre around Lakeside North Harbour which consistently achieves rents of around £25 per sq ft, though the city centre “could benefit from renewed office market momentum in the future, thanks to Portsmouth City Council’s Civic Quarter regeneration programme, which we are actively advising on”.

The overarching theme across the South Coast office market in the first half of 2025 was one of constrained supply and subdued transactional activity; deals that completed were predominantly in out-of-town locations.

Russell said: “While there has been a consistent flow of enquiries, many occupiers remain in a period of reflection, reassessing their post-pandemic workspace needs.

“Early adopters of the return-to-office trend are now consolidating – either expanding their footprint or right-sizing to better reflect hybrid working patterns.”

In Dorset, the report stated, the shortage of high-quality office supply persists, with significant pent-up demand.