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Business tenants urged to 'take control' of energy spending

Business tenants urged to 'take control' of energy spending

Business tenants urged to 'take control' of energy spending

Businesses renting offices and other commercial properties have many expenses to consider, one of which is the cost of powering their premises and various assets.

With a recent study suggesting that many firms feel relatively powerless to make significant changes in this area, comparison site Love Energy Savings has urged business tenants to look for ways to take greater control of their outgoings.

 

The British Chambers of Commerce (BCC) and British Gas conducted a survey of over 2,100 organisations to gauge how the business community feels about energy efficiency.

More than a quarter (27 per cent) of firms that rented their premises felt that they had no real say over energy efficiency improvements.

This could be putting many companies at a financial disadvantage, given that increased efficiency can be an effective route to lower energy costs.

Just 13 per cent of respondents to the BCC and British Gas survey had seen a fall in their energy expenses over the last three years, while more than a third (35 per cent) had seen their bills go up and 37 per cent had witnessed little or no change.

Phil Foster, managing director at Love Energy Savings, said it is "crucial" for businesses to find ways to reduce their expenditure in this area, particularly when other overheads are rising.

He warned that many tenants are spending money unnecessarily because they are not aware of the full terms of their rental agreement.

"Communication is key," Mr Foster advised. "Talk to your landlord, building manager and energy supplier at the earliest opportunity and make sure you're not getting a raw deal. Ask them if you can make energy-efficiency changes, and if they say no, find out why.

"Thankfully, laws are in place to make buildings more energy efficient. Also, large commercial property management companies are increasingly being judged on their environmental impact. They need to do their bit and so it's likely that they'll be receptive to any eco-friendly measures that you suggest."

As well as focusing on the various systems and features within the workplace, a business energy efficiency drive should encompass all services provided by external suppliers like professional office cleaners and delivery firms.

Assessing the green credentials of any outside company or contractor you choose to work with is an important part of promoting high standards and eco-friendliness across your organisation.

This rigorous approach to efficiency, sustainability and cost management could prove particularly valuable for commercial tenants that are feeling the effects of rising rents.

Real estate services adviser CBRE this month released figures showing steady growth in prime commercial property rents during the first quarter of 2016.

Rental values were up by 1.4 per cent, matching the post-financial crisis high recorded in the final quarter of last year.

There were particularly strong increases in rents for offices, retail warehouses and industrial properties.

 

Posted by Julie Tucker

Image courtesy of iStock - AndreyPopov