Driving operational efficiency for occupiers through smarter spending

According to our latest research, the top strategic goal for 38% of occupiers is operational efficiency and resilience, while rightsizing and increased workplace flexibility add to the cost lens. With capex constrained, every square foot of an asset must prove its worth in productivity, efficiency, and alignment with the business.

Occupiers are becoming more selective, service charges are under scrutiny, and ESG reporting is no longer optional. In this environment, cost efficiency isn’t a box-ticking exercise - it’s central to asset performance and occupier satisfaction. Below we explore five efficiency principles which drive value.

1. Spending with purpose

To avoid wasted capex or misaligned upgrades, or systems that don’t integrate with existing infrastructure, investment in amenities, proptech, and ESG features must be guided by occupier value and willingness to pay. These potential missteps waste money, frustrate occupiers, and undermine trust.

The answer seems simple but is not always easy: spend where occupiers see value. In practice, that means auditing existing amenities, linking every investment to actual occupier demand, and being disciplined about cost recovery through leases and service charges.

2.  The power of data

One of the biggest opportunities for building owners lies in better data. Smart meters, automated readings and occupancy analytics can highlight inefficiencies, reduce energy consumption, and lower service charges. AI platforms can now diagnose issues in real time -from water leaks to unnecessary heating - providing both savings and sustainability gains.

But none of these systems are plug-and-play. They only pay off when properly implemented, integrated, and supported with adequate training. Upskilling on-site teams so they can interpret and act on this energy data will empower them to identify and implement real efficiencies.

3. Policy and rates matter

Business rates and legislative frameworks create both risks and opportunities. Business rates remain one of the largest outgoings for both building owners and occupiers, and they offer significant opportunities for savings if managed proactively, as highlighted in the example below:

25 Bowling Green Lane, London
Client: CLI Dartriver Ltd
Portfolio: 15 central London office assets

Objectives: To reduce business rates liability, secureprovide strategic advice, and manage rate payments.

Actions: Knight Frank supported CLI Dartriver Ltd throughout the lifecycle of multiple assets - from refurbishment planning to completion - advising on rating implications, timing, and challenges.

Outcomes:
•    Over £2.5m of Rateable Value removed from the Rating List
•    Successful arguments that End of Trip facilities are non-rateable
•    Delayed rating entries on completed buildings via negotiations with local authorities
•    More than £1m in savings at Typeworks, Farringdon alone

Commenting on the partnership, the client said: “We have worked with Knight Frank for several years and their expertise in business rates has been invaluable to helping CLI Dartriver achieve cost savings. Their strategic guidance and clear advice have helped reduce our business rates liability across our portfolio, most notably securing over £1 million in savings at Typeworks, Farringdon.
 
“Their support has also been instrumental on our development projects in and around the City, where their proactive approach and deep understanding of the rating system have consistently delivered positive outcomes - even when dealing with a challenging local authority.

“We would not hesitate to recommend Knight Frank to anyone seeking to reduce their business rates liability.”

This is cost efficiency in action - not through cuts, but through intelligent positioning.

4. Tailoring fit outs

Fit out strategies are another area where spending can spiral if not aligned with demand. Standardisation is tempting because it simplifies delivery, but it risks wasting money on features occupiers don’t value.

Tailored fit outs, based on sub-market analysis and occupier profile, not only reduce voids but can attract rental premiums. Occupiers will pay more for space that feels “ready-made” - provided the fit out balances flexibility with relevance.

5. Collaboration matters

One of the most overlooked drivers of cost efficiency is collaboration. Building owners, occupiers, and advisers who share benchmarking data, lessons learned, and performance insights can surface savings that no single party could achieve alone. Whether coordinating ESG reporting, rate mitigation, or supplier consolidation, collaboration reduces duplication and sharpens decision-making.

Looking ahead

Over the next three to five years, expect predictive analytics, automation, and AI-driven diagnostics to become standard in building management. Occupiers will expect transparency not just around rent and service charges, but around the efficiency of every amenity and system.

Fit out strategies will keep moving towards modularity, sustainability, and reuse. ESG performance data will influence valuation as much as service charge efficiency. And business rates mitigation will increasingly be treated as a core asset strategy, not an afterthought.

Creating real efficiency

With inflation still high and occupiers keeping a close eye on spending, cost control is about extracting value from every decision, not just cutting costs. Smarter spending creates real efficiency. And real efficiency is exactly what occupiers and investors are looking for.

Every pound spent must deliver a measurable return – and occupiers will notice. 
Our business rates advisors help you to reduce, appeal and manage your liabilities –offering proactive, tailored support to identify opportunities to reduce your rate expenses. Get in touch with our team.