Corporate Real Estate

Challenges and solutions for CRE

The CRE sector faces challenges in reducing emissions. While many companies aim to decarbonise their portfolios, only 15% of global assets meet the Paris Agreement’s 1.5°C goal. Solutions like deep energy retrofits can reduce waste and create alignment with the Paris Agreement goals, as retrofitting emits less than half the carbon of redevelopment. Additionally, it can enhance buildings’ energy efficiency, improving heat retention capacity and replacing energy sources with renewable alternatives.

Green case-studies in CRE

The Canary Wharf Group (CWG) aims to achieve net zero carbon emissions by 2030, with approved Science Based Targets guiding this goal. CWG has partnered with the Eden Project to enhance biodiversity and create green spaces. The estate features 20 acres of landscaped parks, gardens, and squares and the group is retrofitting existing buildings to improve energy efficiency and sustainability. For example, the refurbishment of 30 South Colonnade, focuses on sustainability and wellness, featuring BREEAM Outstanding and WELL Platinum ESG certifications. By employing this strategy on the building, CWG have been able to attract forward thinking tenants, such as the digital bank Revolut, which has taken the space as its new global HQ.

Haleon partnered with Incendium Consulting to transform its approach to sustainability, aiming to create a workspace that fosters flexibility, collaboration, and a reduced environmental footprint. This project focused on right-sizing Haleon’s office portfolio, while enhancing its efficiency and sustainability, aligning with the organisation’s commitment to environmental responsibility. The shift has not only optimised space utilisation, but also supported Haleon’s broader sustainability objectives, underscoring a new model of sustainable workspace design, which received BREEAM Excellent certification.

Typical CRE roles 

• Facilities Manager 

• Property Manager 

• Sustainability Consultant  

• Real Estate Development Manager  

• Workplace Strategist  

• Construction Manager  

• Environmental, Health and Safety Manager  

• Interior Designer 

• Fit Out Specialist 

• Contract Manager 

Jobs in decline and jobs increasing in demand due to sustainability

Various sustainability-related roles exist in the sector, such as Sustainability Consultants, Energy Managers, and Green Building Experts. Additionally, many jobs can include elements of sustainability as the movement towards sustainable practices has shifted traditional roles’ responsibilities.

Hybrid working has led to a significant increase in empty commercial real estate office buildings. Vacant space significantly contributes to emissions, as landlords still have a duty to keep the properties semi-operational. Rising operating costs mean that they are actively seeking alternative uses for the properties. This has created a huge opportunity for new jobs in the flexible workspace sectors, as providers look to increase their portfolio sustainably by occupying and retrofitting ‘grey space’. Facilities Management now often involves implementing and managing sustainability initiatives within properties, such as energy, waste and water savings projects, as well as technical maintenance which impacts on GHG and non-GHG emissions. There is also an increased need for professionals to directly address challenges related to environmental and social sustainability. Roles like Sustainability Managers and Green Construction Analysts are in high demand as a result.

Bridging the skills gap

There is a significant sustainability skills gap in the industry. Many buildings are facing mounting pressure to comply with stricter government energy efficiency standards. In response to this, advanced software tools can now enable more precise evaluations of a building’s energy performance, helping to find new energy-saving opportunities. However, there is a shortage of skilled professionals with the expertise to leverage these technologies and optimise their potential. Additionally, since the introduction of new ESG reporting standards and regulations such as the Green Claims Code, organisations in the built environment now face substantial financial penalties if they fail to achieve sustainability targets or misrepresent their environmental initiatives. The result is a growing demand for sustainability skills in the sector. 

Transition pathways 

There are opportunities for professionals already working in CRE to transition into more sustainability-focused roles and gain new skills for the future. For example, interior designers can take courses on ensuring spaces are sustainable. Certifications in green and biophilic design may also be worth considering. The WELL APWELL AP credential signifies expertise in promoting human health within the built environment, focusing specifically on the principles of the WELL Building Standard. Facilities managers can develop their skills in energy and waste management through certifications such as the Sustainability Facility Professional (SFP) credential available through the International Facility Management Association (IFMA) and through membership to the Institute of Environmental Management and Assessment (IEMA). These accreditations can equip professionals with the knowledge and skills to create and maintain sustainable, healthy environments as the CRE sector moves towards sustainable initiatives. As well as creating increased job security, transition pathways such as these also help workers to actively contribute to the CRE industry’s sustainability efforts.  

What does the Real Estate Sector Encompass?

Corporate Real Estate
Managing and optimising real estate assets owned or leased by companies for their operational needs, such as offices, warehouses, and production facilities.

Commercial Real Estate
Properties used exclusively for business purposes, such as office buildings, retail spaces, industrial properties, and hotels, often bought or leased for income generation.

Residential Real Estate
Properties used for housing, including single-family homes, apartments, condominiums, and vacation homes, aimed at individuals or families.

Industrial Real Estate
Properties used for manufacturing, logistics, warehousing, and research and development, tailored to support production and distribution activities.

Real Estate Investment
The purchase, ownership, or management of properties for financial returns, encompassing activities like real estate investment trusts (REITs), private equity, and individual investors.

Property Management
The administration and oversight of real estate assets, including leasing, maintenance, tenant relations, and compliance with regulations.

1. UK sees surge in the demand for green skills despite overall job market decline – PwC Green Jobs Barometer
2. Green Claims Code
3. Forbes: A Green Office Equals A Productive Office
4. Eden Project: Canary Wharf Group partnership
5. BREEAM – Sustainable Building Certification
6. Property week – UK commercial property generates highest carbon emissions in Europe