By Mark James, Insights Analyst
Power was once a technical detail, largely invisible to occupiers. Now, tenants are being forced to switch on.
A combination of electrification, ESG scrutiny and regulation has pushed energy from a landlord concern to a core occupier consideration. Buildings are being re-engineered away from fossil fuels towards electric systems, largely driven by government dictated EPC requirements and landlords’ own decarbonisation targets.
At the same time, occupiers are asking more of their space. Smart buildings, workplace technology and sustainability credentials are no longer optional extras, but are now part of the brief.
Yet despite this shift, many businesses still lack a clear understanding of how their space is powered and what that means in practice. This blog will delve into both how these affect the occupier, and why awareness is critical for making informed real estate decisions.
Emissions: measurement is now non-negotiable
The conversation has moved beyond setting ESG targets to proving progress against them.
For offices, this centres on two areas:
Scope 2 emissions: from purchased energy used in day-to-day occupation
Scope 3 emissions: linked to the wider operation of the building, including landlord activity driven by tenant use
Without clarity on both, reporting lacks credibility, limiting a business’s ability to manage and reduce its footprint. In simple terms, if you do not understand how your building is powered, you cannot fully understand your emissions.
Power capacity: can the building support your business?
Power requirements vary significantly by sector and use case.
Some occupiers are highly energy intensive:
- Life sciences: operate lab space requiring ventilation and refrigeration
- Technology: run on-site hardware
- Media and production: integrate studio and editing equipment
Others are less demanding in volume but are highly sensitive to disruption, such as financial and professional services for whom outages can translate directly into loss of revenue.
In all cases, there are similar questions that need to be asked:
- Does the building have sufficient capacity?
- What redundancy is in place?
- How long can backup systems support operations?
- How quickly do they activate?
Whereas occupiers have previously looked at these as technical details, they are now waking up to operational risks these questions present.
Resilience: reliability matters as much as supply
It is not just about capacity that matters in the powering your office space, but reliability. Short interruptions can have outsized consequences, particularly in sectors reliant on constant connectivity and uptime.
The key touchpoints occupiers should be aware of are:
- Backup generation and storage
- Whether systems are powered by diesel, battery or hybrid
- Coverage duration and recovery protocols
Understanding these alongside your own requirements will help you make the correct space decisions and avoid unnecessary disruption.
Workplace experience: efficiency versus control
Energy systems increasingly shape how the office feels and functions, with significant variation between power sources.
Electrified buildings typically offer:
- More consistent temperature control
- Automated ventilation linked to air quality
- Greater overall energy efficiency
However, this often comes with reduced occupier control. Heating and airflow are frequently managed centrally through building systems, which can create friction between what the systems determines the optimal level to be and your employees’ needs.
Common trade-offs include:
- Slower responsiveness compared with traditional gas systems
- Perceived lack of control over temperature and airflow
- Variability between buildings depending on system design
For occupiers, this becomes a people question as much as a technical one. Hitting on the right solution will depend on both gauging the needs of the workforce and ensuring regular dialogue with them around their experience of the space.
So what does this mean in practice?
Electrification will continue to accelerate, with regulation, cost pressures and energy security concerns all pointing landlords and developers in this direction.
But the decision is not simply electric versus gas.
For occupiers, the real considerations are:
- Transparency: do you understand how your building is powered?
- Capacity: can it support your operational needs, now and in the future?
- Resilience: what happens when systems malfunction?
- Experience: how does the system impact your people day to day?
Power is no longer a background utility, but a key factor in real estate strategy.
Those who engage with it early will be better placed to secure space that is not just sustainable but operationally fit for purpose.
