How PropTech can help firms deliver effective returns to office working: Sally Appleton

For anyone unfamiliar with PropTech, it encompasses products and services designed to optimise every stage of the property lifecycle. From site selection, planning, and investment, to construction, energy use, and building management, these innovations all support real estate businesses.

This is particularly true when it comes to sustainability reporting which is vitally important in real estate. Tenants, landlords, and construction companies must all demonstrate their commitment to responsible practices.

This is driven by growing investor demand, regulatory changes, and increasing awareness of the environmental and social impacts of real estate. Stakeholders are demanding clear and comprehensive communication of sustainability progress with robust data, which is a complex undertaking.

Property investors have an ever-increasing appetite for sustainable, high-performing properties and increasingly integrate ESG credentials into their decision-making.

Investing in property represents a substantial, long-term financial commitment. Historically, investors relied on the experience and judgement of human experts for in-depth property assessments. However, traditional methods can be time-consuming, labour intensive, and costly.

Instead, PropTech solutions streamline investment decisions by augmenting human expertise with data-driven insights, offering efficient and accurate tools for research, valuation, and due diligence.

Property assets with strong energy performance and established ESG credentials enjoy a competitive advantage which increases value, attracts buyers and tenants, and enhances market appeal.

However, badly performing properties are under pressure, often leading to discounted rents and reductions in value. While there may be concerns about the cost of implementing ESG systems, doing nothing is not a viable option.

PropTech can also support tenants through smart building technology which plays a crucial role in optimising energy use. Smart buildings can automatically match energy consumption to occupancy and usage, for example, by adjusting lighting and heating systems. They can also integrate power generation, such as solar panels or micro-wind turbines, to reduce reliance on the grid. Smart systems also enable tenants to monitor and optimise water usage and waste disposal, including tracking recycling rates.

Plus, smart sensors optimise air quality, lighting, and temperature, creating a healthier and more productive workplace. PropTech then supports fully transparent sustainability reporting by efficiently collecting and organising all this data.

Landlords also recognise the link between property performance and talent retention. The issue of remote versus in-office working remains a debate, and many employers are encouraging a return to the office.

PropTech potentially offers a solution by enabling landlords to provide personalised, high-quality working environments that enhance tenant satisfaction and therefore help to attract top talent.

Sally Appleton is a partner and head of the Yorkshire office at independent accounting firm Saffery.