We observed a notable increase in demand for green buildings¹ in 2024, with the EU’s new sustainability reporting requirements (CSRD) acting as a clear catalyst. We now see that the Omnibus package, the EU’s proposal to simplify certain recently introduced requirements, is having an impact on the commercial property market, but seemingly to a lesser extent than initially anticipated.
ESG
1 Green buildings here defined as office buildings with Energy Class A, or BREEAM NOR / BREEAM In-Use certification at Outstanding or Excellent level.
In April last year, Akershus Eiendom carried out an analysis of the expected demand for green office space going forward. The analysis can be read here. The results showed that the expected demand for office space in green buildings was roughly twice as high as the estimated supply over the same period.
Based on the proposed adjustments in the EU’s Omnibus package, we have now updated our earlier analysis, which can be read here. The updated results show that while the proposed changes will influence the property market, the impact is expected to be less significant than first assumed.
9 ESG
Foto: Adobe Stock
Expected demand for green buildings, office space, m2
1 Demand for green buildings
2 Supply of green buildings
2024
2X
1
2
Demand Public Sector Tenants
3,5X
1
2
After Omnibus
1,8X
1
2
Although the number of companies expected to fall under CSRD requirements is reduced, we observe a strong increase in companies voluntarily committing to climate targets, for instance through the Science Based Targets initiative (SBTi).
Even if reporting obligations for some companies are now postponed or simplified, many boards and management teams have already raised awareness and, in some cases, committed to a more comprehensive environmental strategy. On this basis, we assume that demand for green office space will largely be sustained, even if the Omnibus proposal is adopted in its current form.
Based on recent media coverage, it may appear as if the Omnibus package will reverse corporate environmental ambitions. However, we only see minor changes for a small number of companies leasing office space in Oslo, and the overall trend in the market towards greener buildings remains largely intact.
Foto: Adobe Stock