Today, it’s no news to anyone: the world of real estate is suffering. For the second year running, the REIT market has posted negative returns. The average overall return was -2.45% in the first half of 2024 (Les Echos).
Despite the difficulty of raising funds, investors are facing up to the reality of environmental regulations. The tertiary sector decree and BACS require investors to take action to improve the energy performance of their real estate portfolio.
Previously, investors did not have to think about undertaking major works because they could invest CAPEX. Today, the situation is very different, and landlords have to find cost-effective solutions to comply with French and European regulations.
Regulatory deadlines are becoming a reality. The first deadline for the BACS decree is 1 January 2025, and 2030 for the tertiary decree. Action needs to be taken now.
Reducing energy costs without over-investing
Today, it’s difficult to carry out major renovation work, because it involves major investments that are difficult to make in the current economic climate.
The challenge for landlords is therefore to improve the energy performance of their properties at the lowest possible cost.
Investors can implement simple measures to reduce consumption during periods of vacancy. These periods of vacancy correspond to the times when the offices are empty. Once identified, maintenance staff can adjust the settings of the equipment to ensure that it is switched off or consumes less energy. In this way, they can easily make savings.
To achieve these results, all you have to do is keep a close eye on your consumption and analyse it. That’s what we offer, by monitoring consumption in real time on our SaaS platform, by installing IoT sensors on the energy meters of both old and new buildings. Our energy managers then analyse the consumption curves to identify areas for improvement in equipment settings.
These analyses also enable us to identify the most efficient buildings and those that are less efficient. This makes it easier for owners to prioritise their work. Sometimes this leads them to abandon plans to carry out works, because the analyses show that the building’s performance does not require renovation.
Lightweight IoT solutions enable consumption data to be collected using only useful equipment, without over-equipping. As a result, investors make appropriate investments, avoiding unnecessary CAPEX.
Furthermore, by adopting this type of solution, it is possible to include it in the charges passed on to tenants, thus avoiding any investment on the part of the landlord. It is therefore essential to involve them in order to obtain their agreement and cooperation in the process of making the building more sustainable.
Tenants at the heart of the strategy to decarbonise buildings
Tenants are key to the decarbonation of buildings, as they are responsible for 50% of a building’s energy consumption. The way they use lighting, electrical sockets and equipment (computers, screens, etc.) accounts for half of the building’s energy consumption. The heating, ventilation and air conditioning (HVAC) equipment accounts for the other half. By adjusting them correctly, you can easily make energy savings. In fact, it is simpler to act on equipment than to ensure changes in human behaviour. However, these adjustments have a direct effect on the occupants and their comfort, so it’s important to involve them in the process too.
Today, awareness among tenant companies is varied.
Large companies are sensitive to green actions in their buildings because they generally have a CSR strategy of their own. They are therefore keen to take action to improve the building’s environmental performance. Communication with occupiers is therefore essential.
Small businesses, on the other hand, generally do less to make a virtuous impact on their environment. Clear, well-constructed CSR policies are less common. Action to improve the environmental performance of the buildings they occupy is therefore clearly not a priority. That’s why it’s a good idea for landlords to offer this kind of solution to make things easier for them.
In addition, these smaller companies will soon be subject to the CSRD. This directive encourages action in favour of sustainable development and enables companies to assess their impact in this area. It has been in force since 2024 for major players, but will affect smaller structures from 2025.
Application of the CSRD directive
Entry into force of the CSRD directive | First reporting | Companies concerned |
1st January 2024 | 2025 (for the year 2024) | Companies already subject to the Directive on the publication of non-financial information in force since 2018. That is, companies meeting two of the following criteria: more than 500 employees, more than €50 million in turnover, more than €25 million in balance sheet total |
1st january 2025 | 2026 (for the year 2025) | Companies meeting two of the following criteria: more than 250 employees, more than €50 million in sales, more than €25 million in total assets |
1st january 2026 | 2027 (for the year 2026) | SMEs listed on the stock exchange (except micro-enterprises: companies with fewer than 10 employees and total assets not exceeding €450,000 or net sales not exceeding €900,000) |
Source : https://entreprendre.service-public.fr/actualites/A16970
Landlords therefore have an opportunity to create a special relationship with their tenants by helping them to meet the objectives of this directive.
What’s more, regardless of the size of the tenant company, this type of action demonstrates the landlord’s commitment to improving comfort and better management of their charges. In this way, the investor improves the relationship with the tenant.
To conclude, faced with a struggling real estate market and increasing regulatory requirements, landlords are faced with the need to improve the energy performance of their real-estate portfolio while keeping their investments under control, thanks to lightweight solutions and the involvement of their occupants.
