Poor energy performance across commercial real estate portfolios is already impacting asset values, operating costs and long-term risk, creating urgent challenges for facilities management and energy leaders across Europe.
New research from re:sustain, based on a survey of 200 institutional asset managers overseeing €296 billion in assets, reveals the scale of the issue. More than half (58%) of respondents report that between 10% and 30% of their portfolios are performing above expected energy benchmarks, while a further 33% say as much as 30–50% of assets are underperforming.
Alarmingly, 11% report that more than half of their portfolio falls into this category. Rising energy costs are compounding the problem. Nearly seven in ten (69%) investors have seen energy costs increase by 20–30% over the past two years, with almost a third (31%) reporting rises exceeding 40%.
For FM and energy management leaders, the findings reinforce the growing importance of operational performance at asset level. While 95% of investors have plans to improve efficiency, the focus is increasingly shifting toward how improvements can be delivered in live, multi-tenant environments without disrupting operations or income.
Modernisation remains a key priority. Over half (58%) of respondents are targeting upgrades to HVAC and electrical systems, while 48% are prioritising optimisation of existing systems through better controls, scheduling and set points. Building management system (BMS) upgrades (45%) also feature prominently, alongside more drastic measures such as asset redevelopment or demolition (44%).
However, execution remains a major barrier. Coordinating between landlords and tenants is cited as the biggest challenge, followed by capital expenditure constraints and the risk of business disruption during upgrades. Regulatory complexity and skills shortages further complicate delivery.
The research points to growing interest in low-disruption, technology-led approaches. Solutions that leverage existing BMS data to optimise performance (without requiring significant capex or operational downtime) are gaining traction as organisations look to balance sustainability targets with commercial realities.
As energy volatility continues and regulatory pressure intensifies, improving building performance is no longer a future consideration. For FM leaders, it is now central to cost control, compliance and protecting asset value across increasingly scrutinised portfolios.
