Why Landlords Need To Stop Treating Sustainability As A Reporting Exercise

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• Why Landlords Need To Stop Treating Sustainability As A Reporting Exercise

07 August 2026 | Updated 06 August 2026

Michelle Knowles, Associate Surveyor in the Commercial Property Management team at Fisher German, explores why sustainability in commercial property management is increasingly about operational performance rather than reporting, and discusses how better use of building data can help landlords reduce costs, improve asset performance and meet growing investor and occupier expectations.

For commercial property owners, the conversation around sustainability has changed. The challenge is no longer setting ambitious targets; it's understanding how buildings actually perform and using that information to make better decisions.

As expectations continue to rise from investors, occupiers and regulators, the latest Real Estate Environmental Benchmark (REEB) highlights the growing importance of reliable operational data. Developed using annual utility information submitted by members of the Better Buildings Partnership (BBP), the benchmark provides a picture of how office, industrial and retail assets are performing in day-to-day use.

REEB's real value lies in helping owners understand where their buildings sit against the wider market. Most landlords want to improve the environmental performance of their assets, but it's difficult to know where to begin without a point of comparison. Benchmarking helps you see whether a building is performing as expected or whether there are areas that deserve closer attention.

That has become increasingly important as sustainability moves beyond policy commitments and into day-to-day asset management. Changes in occupancy patterns continue to affect energy consumption, while growing investor scrutiny and reporting requirements mean building performance data is playing a much bigger role in investment and management decisions.

The latest REEB findings also show that energy is only part of the story. Water consumption is becoming a much bigger consideration than many owners realise. The average office building included in the benchmark uses around 2.3 million litres of water each year, while the largest offices consume close to 100 million litres annually. Common areas in shopping centres can also account for significant water use, highlighting opportunities that are often overlooked.

For property managers, the value of this information lies in what happens next.

The most successful sustainability programmes usually start with understanding the data. Whether it's improving metering, investigating unexpected consumption, reviewing plant performance or working more closely with occupiers, relatively straightforward operational changes can often deliver measurable improvements without major capital investment.

This reflects a broader shift across the commercial property market. Investors are placing greater emphasis on how assets perform in practice rather than relying solely on design credentials.

Occupiers are looking for efficient, well-managed buildings that help control operating costs while supporting their own sustainability objectives. At the same time, landlords must continue to protect asset value as regulation and market expectations change.

Against this backdrop, benchmarking has become much more than a compliance exercise. Used well, it helps owners decide where investment will make the greatest difference, identify operational inefficiencies and build stronger asset management plans based on evidence rather than assumptions.

The industry's attention has rightly shifted from setting sustainability ambitions to delivering measurable performance.

REEB won't improve a building on its own, but it does help identify where the biggest opportunities exist. The landlords who act on those insights will be better placed to reduce costs, improve resilience and strengthen the long-term performance of their portfolios.

Ultimately, buildings that aren't measured properly are far harder to improve. For landlords looking to balance commercial performance with growing environmental expectations, that's perhaps the most important lesson the latest REEB benchmark has to offer.

Picture: An image of Michelle Knowles, Associate Surveyor in the Commercial Property Management team at Fisher German.

Article written by Michelle Knowles | Published 07 August 2026

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