According to Savills’ latest research, European offices and logistics are the two commercial real estate sectors most shielded from energy shocks as utility costs account for a relatively small share of total business spending.

Savills forecasts that rising energy prices will be a major challenge for commercial property landlords, managers and tenants in 2023. In response to market expectations, Savills has launched an interdepartmental service line dedicated to improving energy performance and helping identify ways to reduce annual energy consumption in buildings by up to 14%.

As service charge budgets are set for 2023, occupiers and landlords with vacancy can expect significant operational cost increases across their real estate portfolios. Property Forum talked to Ryan Wray MRICS, Principal at Avison Young Czech Republic to understand what you can do to make savings and get better value from your budget.

The next few months will show the extent to which the increase in the costs of renting office space and property maintenance will affect further development of the office sector. Higher costs of running a business will force companies to verify their budget plans, says Robert Pastuszka, Director, Office Agency at Avison Young Poland.

With energy prices rising at an unprecedented rate and the system of governmental discounts on utility bills in Hungary significantly changing, working from the office might become a more attractive option even for those that love working only from home. In the coming months, not only employees but employers will also try to reduce their energy use. Energy-efficient office buildings will further increase in value as they will become a more attractive option for tenants. Flex and serviced offices will also see increased demand as they will be able to provide a more financially stable option for tenants with utility costs included in the rental fee.