BUSINESS BRIEFING EUROPEAN LANDLORD & TENANT SURVEY 2009 SPRING 2009
CONTENTS
EXECUTIVE SUMMARY
EXECUTIVE SUMMARY
Cushman & Wakefield’s third European Landlord & Tenant survey focuses on attitudes to occupation of space and environmental issues. A total of 750 tenants and landlords took part in the survey. The business environment and the property market have changed considerably since the last survey in 2007, which was undertaken at the height of the market. A number of trends have accelerated as the downturn in the economy influences tenant behaviour and the survey highlights the increasing focus on the use of property to lower costs.
1
Introduction
LOCATION AND BUILDING FACTORS 2
Location Preferences
3
Building Preferences
4
Building Dimensions
4
Influence of Building Factors
5
Lease Terms
DEMAND FOR SPACE 5
Space Utilisation
7
Occupational Densities
8
Factors Influencing Demand for Space
9
Expansion Space
9
Use of Real Estate to Counter Economic Downturn
SUSTAINABILITY 11 Focus on Sustainability 11 Occupation of Green Buildings 11 Premiums for Green Buildings 12 Environmental Ratings 14 Advantages of a Green Building 15 Obstacles to Green Buildings
CONCLUSION ABOUT CUSHMAN & WAKEFIELD RESEARCH Cushman & Wakefield LLP European Headquarters 43/45 Portman Square London, UK W1A 3BG www.cushmanwakefield.com
INTRODUCTION This survey focuses on how tenants are anticipating performance in the current economic climate and what are the implications in how they occupy space. Consideration of environmental issues and working practices and their implications for property are the mainstay of the research. The survey looks in detail at location and building parameters and their influence on the decision to lease or purchase a building. It considers how tenants have changed the way in which they occupy space and what factors will influence the demand for space moving forward, Analysis of green issues such as paying premiums for green space and the importance of different environmental rating systems are also discussed. Analysis across sector and geographical region was undertaken to highlight any key variations in attitude to these aspects, to assist landlords, and indeed tenants, who may operate across borders and also to help target specific sectors. This is the third year C&W have undertaken such a survey and ensures that we continue to stay abreast of key occupational issues in order to advise landlords, developers and tenants in how to maximise their utilisation of property.
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EUROPEAN LANDLORD & TENANT SURVEY 2009
A CUSHMAN & WAKEFIELD PUBLICATION
LOCATION AND BUILDING FACTORS LOCATION PREFERENCES Location factors remained constant year on year and there is a general consensus as to what makes a good location. The majority of those surveyed prefer a city centre or edge of centre location, accounting for three-quarters of the total sample. (see figure 1). FIGURE 1: WHERE IS YOUR IDEAL OFFICE LOCATION IN THE FUTURE?
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FIGURE 2: IMPORTANCE OF LOCATION FACTORS (5 IS MOST IMPORTANT)
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Being close to a public transport hub is the main location factor, followed by accessibility by car. These two were the top factors in 2007 from both a landlord and tenants perspective. The least important factors remain being close to a vibrant retail environment or other leisure amenities, the latter being the least important for the second year running. Tenants seem to pay less attention to these two factors than landlords. (see figure 2). Tenants place different levels of emphasis on location factors across Europe, although near to a public transport hub is equally important across all regions. Accessibility by car is of significantly lower importance to UK tenants, (3.6) than to Central European tenants who rate the factor highest (4.4). Western European tenants rank proximity to the city centre relatively low (3.2) compared to tenants in the UK and Russia (3.7). UK tenants place more emphasis on proximity to other amenities than their counterparts across mainland Europe, with Russian and Western European tenants ranking this as the least important location factor. Being located close to public car parking was of greater importance to Southern European tenants, than any other region.
EUROPEAN LANDLORD & TENANT SURVEY 2009
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LOCATION AND BUILDING FACTORS BUILDING PREFERENCES There is still a different emphasis on building design factors but the variation in opinion and order remains constant. What is notable this year is that energy efficiency increased in importance to both landlords and tenants, along with natural ventilation and wireless technology. Natural light remains the most important building design factor as in 2007. Car parking for all increased in importance but car parking for senior management is less popular this year. Despite the purported move to greener buildings, sustainable building materials and whether the building had a BREEAM or LEED rating are firmly entrenched towards the bottom in terms of importance, however the latter is in part due to the limited number of existing buildings with these rating systems. Southern European tenants place a much greater emphasis on natural light, than tenants from other regions. UK tenants rank energy efficiency as the most important building design feature and this is also an important factor to Southern European tenants. Those located in Central & Eastern Europe are more likely to consider air conditioning and car parking as the most important building design features. Ensuring HSE standards are met was more important to tenants in Western Europe, while UK tenants are least concerned about this factor. There is a wide regional variation in attitudes towards physical design features such as column free space, architectural merit, large spacious entrance hall and controlled lobby access.
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LOCATION AND BUILDING FACTORS BUILDING DIMENSIONS The ideal floorplate size appears to have decreased for tenants, while landlords are firmly focused on large floorplates. More than a third of landlords state that their ideal floorplate size was in excess of 2,500 sq.m, compared to just 22% of tenants. The most popular floorplate size for tenants is 500-1,000 sq.m. (see figure 3). The ideal floor to ceiling height was 2.8m, although a higher proportion than 2007 stated 2.8m plus. FIGURE 3: IDEAL FLOORPLATE SIZE FOR A CITY CENTRE BUILDING
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INFLUENCE OF BUILDING FACTORS Tenants were asked how much influence does the presence of a number of building factors have on the decision to lease or purchase a new building. (see figure 4). Security has the greatest influence overall, followed by uninterrupted power supply and diversity of telecom/ data provision. Security is the number one factor for all tenants around Europe, but more so for UK tenants. Tenants in Central & Eastern Europe are likely to be most concerned about uninterrupted power supply. Building prominence and planning depth are also key factors, particularly to tenants in Southern Europe. Tenants pay less attention to floor loadings, signage opportunities and on-site services in terms of influencing the overall decision. The latter is however significantly more important to tenants in Southern Europe.
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LOCATION AND BUILDING FACTORS LEASE TERMS
FIGURE 4: HOW MUCH INFLUENCE DO THE FOLLOWING HAVE ON A DECISION TO CHOSE A BUILDING? (5 IS GREATEST INFLUENCE)
Increasing flexibility in terms of lease length to reflect the changes *PSSV PSEHMRKW 7GSVI to business strategies over time has long been a major desire of 7MKREKI STTSVXYRMXMIW tenants across Europe; however this is directly at odds with landlords 3R WMXI WIVZMGIW who wish to maximize their income stream. (see table 1). Not (MZIVWMX] SJ 4S[IV surprisingly, this polarization in &EGO YT TS[IV KIRIVEXMSR attitude is particularly evident in the diversity of opinion between (MZIVWMX] SJ XIPIGSQW HEXE TVSZMWMSR landlords and tenants views as to what their ideal lease term 4PERRMRK (ITXL would be. This year we asked &YMPHMRK TVSQMRERGI how the ideal lease term would vary depending upon the size of 9RMRXIVVYTXIH TS[IV WYTTP] unit. There is a direct relationship between the size of unit and the 7IGYVMX] ideal length of lease for both tenants and landlords. Not surprisingly given the nature of leases in the UK, landlords ideal lease terms for each unit size is longer than their counterparts in other parts of Europe. However, the divergence between landlords and tenants is greatest in the UK, while there seems to be greater accord in terms of ideal lease terms between landlords and tenants in Central & Eastern Europe. TABLE 1: IDEAL LEASE TERM BY UNIT SIZE
Less than 1,000 sq.m
1001-2,500 sq.m
2,501-5,000 sq.m
More than 5,000 sq.m
Landlord
5.9 years
7.5 years
9.7 years
11.5 years
Tenant
4.4 years
5.7 years
7.1 years
8.5 years
SPACE UTILISATION With pressures on tenants to reduce the bottom line, there continues to be a move away from cellular offices to a combination of open plan and cellular offices. The majority of respondents (45%) now utilise a combination of space with more open plan, a rise of 4% on the 2007 survey. More than half of the tenants surveyed changed the way they utilise their space over the last 12 months with both desk sharing and flexible working becoming increasingly popular. (see figure 5).
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DEMAND FOR SPACE
FIGURE 5: CHANGES TO SPACE UTLISATION OVER LAST 12 MONTHS
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FIGURE 6: ANTICIPATED CHANGES TO SPACE UTILISATION OVER NEXT 12 MONTHS
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Sixty percent of all tenants also anticipate that space utilisation will change over the next 12 months, with open plan working and flexible working practices increasingly considered. (see figure 6). UK tenants are most likely to have changed the way in which they occupy their office space, with just 33% stating that they have seen no change over the last 12 months. Tenants in Central & Eastern Europe are least likely to have made any changes in that period. A combination of higher rental levels and deteriorating business sentiment in the UK is likely to see UK tenants consider how they can use space more advantageously. This is reflected in the fact that the UK has the highest proportion of tenants anticipating further changes in their utilisation of space over the next year. Just 28% of UK tenants do not anticipate making further changes over the next 12 months. Tenants in Central & Eastern Europe are also least likely to adopt changes to space utilisation.
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DEMAND FOR SPACE OCCUPATIONAL DENSITIES Changes to how tenants occupy space has a major influence on occupational densities. The average floorspace per worker in Europe fell marginally from 12.8 sq.m to 12.4 sq.m between the surveys. (see table 2). Over the last 12 months 40% of tenants saw their space utilisation intensify, and more than a third anticipate that it will become denser over the TABLE 2: AVERAGE FLOORSPACE PER WORKER (SQ.M)
Region
UK & Ireland
Western Europe
Southern Europe
Central Europe
Average
Average floorspace per worker 2009
11.6
13.7
12.9
10.9
12.4
Average floorspace per worker 2007
12.1
14.9
12.4
12.0
12.8
next 12 months. Financial services tenants are leading this trend, with more than half already having reduced their space per person over the last 12 months and 40% anticipating floorspace per worker to become increasingly dense. Looking forward, TMT companies are most likely to adjust floorspace per worker downwards in 2009. Companies in the UK are most likely to have seen a decrease in the floorspace per person over the last 12 months, with 44% stating that their space densities had become denser. In comparison just 29% of tenants in Southern Europe agreed that their space utilisation had become denser over the same period. It must be remembered however that property costs are relatively higher in the UK, in terms of rent and property taxes, and an increase in space densities has been one way of offsetting these costs. Indeed, half of UK tenants anticipate their space utilisation to become more dense over the next 12 months, while tenants in Central & Eastern Europe are the most likely to see no change to how they occupy space.
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DEMAND FOR SPACE FACTORS INFLUENCING DEMAND FOR SPACE In the current economic malaise, there are a number of over riding factors that are anticipated to influence the demand for space. The most dominant are making space more productive and overall cost cutting policies with more than a quarter anticipating these will have the most influence on demand in the near term. Consolidation will be a major driver of the demand for space while the reduction in employee numbers is now regarded as a major pressure on space needs. As with 2007, use of wireless technology, increased use of homeworking and the shift to lower cost locations are the lowest ranked influences. (see figure 7). Professional services companies anticipate reductions in floorspace per worker and reduction in employee numbers to have a greater influence on demand for space, while significantly higher proportions of financial services tenants see relocation to cheaper locations to be a greater influence on demand than any other sector. Tenants in Central & Eastern Europe see consolidation of occupancies and increased use of homeworking as being less of an influence than any other region, while those in the UK see reduction in employee numbers and floorspace per worker to be far more influential trends than other regions of Europe. FIGURE 7: WHICH FACTORS ARE LIKELY TO HAVE GREATEST IMPACT ON THE SPACE TENANTS REQUIRE?
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DEMAND FOR SPACE EXPANSION SPACE More than half of tenants felt that they occupy space for future expansion. (see figure 8). In the current market, this space could potentially be released onto the market as tenants come under increasing pressure to cut their costs. FIGURE 8: DO YOU OCCUPY SPACE FOR FUTURE EXPANSION?
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In addition, 70% believe that they could occupy their existing space more efficiently, a rise of more than 10% on 2007. If tenants consider this option, then the potential for more grey space to come to the market increases. This is a more worrying trend in Western Europe overall, with 81% of those in the UK and 69% of tenants in other Western European countries stating that they believe they could occupy space more efficiently.
At this stage it does not appear that tenants are anticipating this option, with just under 30% expecting to reduce the overall space they occupy over the next 12 months. Central European tenants are least likely to be considering reducing space, followed by Southern European tenants, while those in the UK and Western Europe are most likely to consider this course of action. There is already evidence of some subletting space being marketed in a number of key Western European office markets, but currently it is still at low levels. USE OF REAL ESTATE TO COUNTER ECONOMIC DOWNTURN Both landlords and tenants are considering using property to counteract the impact of the economic downturn. (see figure 9 & 10). In fact just 9% of landlords and 26% of tenants do not anticipate using their property in this manner. In expectation of falling rents, almost one half of tenants are anticipating renegotiating their existing leases to reduce the rental commitment, while a further third of tenants are anticipating subletting surplus space. Subletting space is the most likely route for UK tenants, while Western and Central European tenants are keener to renegotiate their existing lease terms. Consolidation of occupancies is the most popular way of reducing property overheads in Southern Europe. Relocating to a cheaper location, whether in the same country or across borders has limited appeal in today’s marketplace for tenants. The upheaval and upfront costs associated with relocating and curbs on capital expenditure within most companies mean that this is not a feasible option in cash starved times.
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DEMAND FOR SPACE Effective rents are falling and according to our survey are likely to drop further, with over half of landlords expecting to increase the incentives on offer to attract tenants while only 37% anticipate reducing headline rents. Landlords in Western Europe, especially the UK are most likely to increase incentives with two third anticipating this course of action. In the UK, more than half of landlords are anticipating reducing headline rents, although this will be resisted to a greater extent FIGURE 9: ANTICIPATED ACTION BY TENANTS TO OFFSET IMPACT OF ECONOMIC in other regions of Europe. Rents SLOWDOWN in the UK are already beginning to come under downward pressure, 7GSVI 6IPSGEXI XS ERSXLIV especially in London, and the HIWXMREXMSR [MXLMR GSYRXV] weaker sentiment evident in the marketplace is reflected in the 6IPSGEXI XS ERSXLIV PS[IV GSWX responses. MRXIVREXMSREP HIWXMREXMSR 6IPSGEXI XS GLIETIV WYFQEVOIX 'SRWSPMHEXI MRXS SRI FYMPHMRK 6IHYGI WTEGI ERH WYFPIX 6IRIKSXMEXI I\MWXMRK VIRXEP XIVQW
FIGURE 10: ANTICIPATED ACTION BY LANDLORDS TO OFFSET IMPACT OF ECONOMIC SLOWDOWN
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The slowdown in development is also re-enforced by the survey, with half of all developers expecting to curb activity. This is a trend that was evident across the whole of Europe, although is reportedly more likely to occur in the UK and Central Europe. With a lack of funding and preletting a prerequisite for construction, supply levels across Europe should be prevented from severe oversupply, which will also support prime levels over the medium term. There appears to be a window of opportunity for tenants to take advantage of the decreasing net effective rents and the potential reduction in rents before more positive sentiment returns to the landlord market.
EUROPEAN LANDLORD & TENANT SURVEY 2009
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SUSTAINABILITY FOCUS ON SUSTAINABILITY Sustainability appears to have taken a back seat in terms of media profile over the last 12 months as the global economy has deteriorated and businesses focused on adapting to the changing circumstances. Interestingly however, almost 40% of those surveyed state that their company is focusing more on sustainability issues than a year ago and just 5% less. More than half of the Southern European companies increased their focus on environmental issues, while Eastern European, particularly Russian companies are more likely to be focusing less on the issues. OCCUPATION OF GREEN BUILDINGS In terms of property, a higher proportion of tenants state that they occupy an environmentally friendly building, increasing from 34% to 42%, while just under 60% of landlords own environmentally friendly buildings, a similar proportion to 2007. With no set definition of what constitutes an environmentally efficient building, it is not difficult to see why tenants and landlords give themselves the benefit of the doubt when considering their own building, but this uncertainty was reflected in the fact that one in four tenants did not know if their building was environmentally efficient. As in 2007, Southern European buildings are thought to be the least environmentally efficient (38%) and UK tenants are more likely to think that they occupy or own an environmentally efficient building (63%- an increase from 49% in 2007). PREMIUMS FOR GREEN BUILDINGS There was a small downturn in the proportion of both landlords and tenants who would expect to pay a premium to purchase or lease a green building between the surveys. Nevertheless, a higher proportion would pay more than not, with 39% of tenants and 44% of landlords willing to pay a premium. (see figure 11). FIGURE 11: WOULD YOU PAY A PREMIUM TO LEASE/PURCHASE AN ENVIRONMENTALLY EFFICIENT BUILDING?
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SUSTAINABILITY Of those landlords and tenants who would pay more, the majority (53%) expect to pay up to 5% more for green space, with just 4% willing to pay more than 10% above the market rate. Professional services companies are overall prepared to pay the most, with over two thirds stating that they will pay 6-10% more. Across all regions, a higher proportion of landlords are prepared to pay a higher premium than tenants, with over a third willing to pay more than 5% above market rent. Central & Eastern Europe tenants seem to be prepared to pay a higher premium than other regions, with 11% stating that they will pay more than 10%. (see figure 12). FIGURE 12: HOW MUCH WOULD YOU BE WILLING TO PAY?
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To date there has been little evidence to support whether or not environmentally efficient buildings command a higher rent or whether tenants will follow through with their good intentions. Interestingly, more than half of those who had leased or purchased a building that had an environmental rating believe that they paid the market rate for the building. A quarter believe that they paid a premium of up to 5% and a further 15% believe that they paid between 5-10% more than the market rent. As economic growth slows the ability for landlords to charge a premium will be greatly reduced and finding a tenant will be the most overriding issue to secure short term income. Market rent was most likely to be paid in the UK, in part due to the falling market, and 70% believe that they paid market rate. Southern Europeans were more likely to have paid a premium, but that was only up to 5% more than the market rate. ENVIRONMENTAL RATINGS The EU directive on the energy performance of buildings is affecting awareness of energy use in all new buildings (and existing ones following renovation/refurbishment). Of the total sample, a similar proportion to 2007 state that it will have an impact on their purchasing or leasing of buildings (69%), however the proportion who anticipate Environmental
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SUSTAINABILITY
FIGURE 13: WILL ENERGY EFFICIENCY RATINGS INFLUENCE YOUR CHOICE OF BUILDING?
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FIGURE 14: ENVIRONMENTAL RATING STANDARD OF THOSE WHO HAVE LEASED OR PURCHASED SPACE IN LAST 2 YEARS
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Performance Certificates (EPCs) having an influence in the immediate future has fallen to 19% of landlords and 16% of tenants. Southern European companies are more likely to be influenced in the short term than any other region, while UK companies are likely to consider other issues just as or more important to the final decision. (see figure 13). Tenants, predominantly multinationals, are starting to specify in their requirements the need for a minimum environmental standard for their buildings. This is borne out of their Corporate Social Responsibility commitments and the desire to reduce the operational costs of their corporate real estate portfolio. Half of those who had leased or purchased buildings over the last 2 years had factored a building’s green credentials into the decision. Tenants (55%) were however, more likely to have considered this as a factor than landlords (42%). TMT companies were the most likely to have factored in green credentials when choosing a building, followed by industrial companies. From a regional perspective, Central European companies were most likely to have considered green credentials, with a slightly higher proportion of tenants than landlords. Companies based in Russia were the least likely to consider the green aspects of a building.
EUROPEAN LANDLORD & TENANT SURVEY 2009
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SUSTAINABILITY Of the buildings leased or purchased over the last 2 years, the majority of buildings taken were BREEAM very good rated (21% of landlords/14% of tenants), followed by LEED Gold Standard (12% of landlords/9% of tenants). However, while stating that green credentials had been factored into the decision, a significant proportion did not know what rating system the final building had. The achieved rating systems will however be a function of the availability of rated offices and rating systems present in a given FIGURE 15: MINIMUM RATING STANDARD CONSIDERED FOR A NEW BUILDING marketplace. (see figure 14). 8IRERXW
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Overall, EPC’s appear to be the minimum environmental rating that both tenants and landlords will consider for new builds. Twenty nine percent of landlords and 21% of tenants state that this is the minimum standard that they would consider, while BREEAM was more favoured than LEED as a rating system overall. BREEAM Very Good was cited by 15% of landlords and 10% of tenants, followed by BREEAM Good (11% of landlords/8% of tenants) and LEED Silver (6% of landlords/8% of tenants) as their companies minimum environmental standard. BREEAM was the most popular rating standards across all regions of Europe, but particularly in the UK where it originates. (see figure 15).
ADVANTAGES OF A GREEN BUILDING An increasing number of tenants, investors and developers recognise that green buildings are a business asset and choosing a green building will become increasingly important over the short term. (see figure 16). When considering a building’s environmental credentials, more focus is placed on energy in use rather than on the actual structure of the building. The most important factors in choosing an environmentally friendly/green building is to take advantage of the reduction in energy and water consumption in use (24% of total sample) followed by the savings in costs of running the buildings (23% of total sample). There was then a considerable gap between third placed reduction in CO2 emissions (9% of total sample). Just 7% thought that the use of sustainable/renewable building materials is the most important, while 6% believe that enhancing corporate image is the main concern. There was some minor variation in the order of importance between landlords and tenants, with landlords placing saving costs in running the building as most important, while tenants focused more on reduction in energy and water consumption in use but on the whole
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SUSTAINABILITY there was agreement as to the main reasons in choosing an environmental building. There were some regional variations, most notably a significantly higher proportion of companies in the UK (38%) placed savings in costs as the most important factor compared to other regions, while Russian companies were more focused on use of renewable materials in the construction of buildings (27%). FIGURE 16: MOST IMPORTANT FACTOR IN CHOOSING A GREEN BUILDING
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OBSTACLES TO GREEN BUILDINGS Most companies state that they would like to occupy a green building but the number who actually do is much lower. A lack of supply is one of the main obstacles facing tenants considering a green building, with 30% of companies stating that this is the main barrier. Companies remain convinced that renting a green building is more expensive (15%) and that the payback period is too long (14%). There are some marked variations in responses between landlords and tenants, with the overriding factor from a tenants perspective being the lack of building choice, while landlords are more divided in their opinion. Being locked into an existing lease was seen as more problematic from a tenants perspective while landlords believe more than tenants that the payback period is too long and there is limited evidence to support claims on energy use. (see figure 17 for landlord/tenant variations).
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SUSTAINABILITY
FIGURE 17: MAIN BARRIER TO COMPANIES OCCUPYING GREEN BUILDINGS
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It would seem that more evidence to support the benefits of green/environmentally friendly buildings is needed to convince both tenants and landlords that their occupation provides long term benefits. Based on some of the responses to the survey, those tenants/landlords that have already leased/purchased a green building have refuted some of the perceived barriers such as the cost of purchasing/leasing a green building. Southern Europe appears to have the least choice in buildings, with almost 40% stating that this is the biggest hurdle, compared with just a quarter in Central Europe. The latter are more likely to think that the rent is more expensive than other regions, while a higher proportion of UK companies are likely to think the payback period is too long. Central & Eastern European tenants, particularly those based in Russia are least likely to know what constitutes a green building.
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EUROPEAN LANDLORD & TENANT SURVEY 2009
A CUSHMAN & WAKEFIELD PUBLICATION
CONCLUSIONS The survey continues to highlight that there are still many areas where landlords and tenants have opposing views. This is understandable given that an owner of the office product will tend to value the building in terms of its economic value, whilst the tenant will be focused on the utility of the building i.e. usefulness to his organisation’s needs. Location is key to the success of what makes a good building and both landlords and tenants have a conformity of opinion regarding location, but there continues to be a disparity when it comes to understanding building design factors, which will limit the success of attracting tenants to buildings. Landlords who build efficient good quality buildings will continue to find their space in demand, particularly as tenants are increasingly discerning about what they want from a building and aware of the impact the right building can have on their business. As demand for space ebbs away in the coming 12 months and supply increases, landlords will reap the benefits of providing buildings that match the needs of tenants. The current economic situation is having a greater influence on tenant behaviour and accelerating a number of trends identified in the last survey. The market is shifting in the tenants favour and a number of expected trends only confirm this view. The threat to letting activity from changing working practices and increasing space densities continues apace and is now evident across the whole region. Tenants still believe that they could occupy space in a more efficient manner and make potential savings in both terms of space and cost. As yet, few tenants have made any great steps to increase the efficiency in utilising their space but if the economic slowdown continues, there is greater potential for space to be returned to the landlord or sublet, thus dampening sentiment in the European office markets. Coupled with using property to reduce the impact of the downturn, rental values will come under further downward pressure. Effective rents will come down, in advance of headline rents and create opportunities for those tenants in a position to move but will reduce income flows to landlords. While the economy has been at the forefront of companies attention, sustainability issues have not disappeared and are continuing to influence how both developers and tenants approach their property. Progress remains slow, and in the current economic climate the supply of green buildings will remain limited. With both tenants and landlords focusing on cashflow, the emphasis is likely to turn to achieving the best deal regardless of the greener issues. On the whole there is still variation between tenants needs across different regions of Europe. Greater communication is still needed between landlords and tenants, to ensure that appropriate office buildings are completed, in terms of location, quality and scale, and to warrant the long term success of new developments in different parts of the region. This survey is just one way that the variation in attitudes between various users of property can be highlighted. This understanding is critical, and never more so than in the current economic climate as competition for tenants intensifies, and will shape the advice to landlords to ensure that they remain successful in attracting tenants.
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EUROPEAN LANDLORD & TENANT SURVEY 2009
A CUSHMAN & WAKEFIELD PUBLICATION
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