The Next-Gen Tenant
A recent report published by Deloitte highlights key factors shaping both career and lifestyle choices for Gen Z and Millennials. With a spotlight on sustainability in the workplace, will this cohort, set to make up 74% of the global workforce by 2030, be the catalyst for real change in how employers and landlords approach their sustainability and ESG measures?
Environmental focus extends far beyond consumer or lifestyle choices. According to the report, 70% of Gen Z and Millennial respondents consider a company’s environmental policies when job hunting. Additionally, 48% are placing pressure on their current employers to act on sustainability and take tangible steps to improve.
As these generations become the leading voice across the workforce, it’s clear that environmental values are no longer a “nice to have.” They are becoming non-negotiable.
While many tenants still prioritise location or amenity as key factors in their attraction and retention strategies, a missing piece of the puzzle seems to be environmental policy. If one in four Gen Zs and Millennials are researching a company’s environmental credentials before accepting a job, should tenants be placing more weight on the sustainability of the spaces they occupy?
Office space decisions could soon begin to impact growth and talent attraction, with these choices acting as signals to future employees. It is no longer just about cost or convenience. Decisions should now consider ESG credentials, wellness and health practices, and alignment with company values.
We have already seen a growing focus on wellness in the workplace, with state-of-the-art EOT, wellness zones, and employee wellbeing programs becoming prominent across major CBD markets. These features impact employee experience and brand perception for both landlords and tenants.
As Gen Zs and Millennials continue to grow in the workforce, the onus to act now sits with both landlords and occupiers. The shift in majority values will reshape tenant expectations and place increasing pressure on landlords to align with ESG and sustainability standards.
It could be seen as a chicken or the egg scenario. Will tenants drive change by demanding more from their buildings, or will landlords recognise the long-term value in brand, occupancy, and asset performance and act first to create competitive, ESG-led spaces?
Only time will tell.
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