PM (Property Managers) Forum

Property Managers Forum Discusses Sustainability and Building Safety

CBRE, HENRIETTA HOUSE, LONDON

The following notes summarise the discussion that took place at the Remit Consulting Property Managers Forum, in February 2024.

ESG Initiatives Gain Traction, But Challenges Remain

The Property Managers' Forum tackled the growing importance of sustainability in building management. The Better Buildings Partnership's Managing for Performance Framework was presented as a tool to identify areas for improvement in energy efficiency and cost savings. However, attendees discussed the difficulty of implementing a one-size-fits-all approach due to varying client priorities, and many explained that they were content with the internal benchmarking they had in place. Collaboration and data collection were highlighted as crucial for success, despite challenges like tenant demands for their own reporting systems.

The discussion also covered the rising interest in green leases, with some arguing they are becoming less stringent. The Better Buildings Partnership's recent guidance on light and dark green lease clauses was mentioned. Ultimately, the forum agreed that investor priorities dictate the level of ESG involvement by property managers.

Building Safety Act - One Year On

The focus of the Building Safety Act (BSA) is shifting from high-rise residential buildings to include buildings between 11–18 meters. Hotels, though currently excluded, were seen by many as needing similar safety measures. The impact on property managers varied, with some facing a significant burden of collecting and storing electronic building information. Unclear disclosure requirements and communication difficulties, especially in student housing, were also concerns.

Data ownership emerged as a problem, with property managers suggesting it should reside with the client. Incomplete due diligence by some clients prompted discussion on how to protect property managers through contracts. Funding for the extra work remains unclear, with questions on cost recovery through service charges. The forum acknowledged the positive impact on resident safety but noted the burden on investors and the challenges of tenant compliance.

Overall, the forum highlighted the growing importance of sustainability and building safety in property management, while acknowledging the challenges of implementation and cost recovery.