But what exactly does ESG mean in the context of commercial real estate? And how is it shaping supply, demand, and advertising?

 E – Environmental: Energy Efficiency and Sustainability as a Standard

Tenants and buyers are increasingly demanding buildings that are energy-efficient, with optimized heating, cooling, and ventilation systems, LED lighting, and recycling options.

Green buildings with certifications such as LEED or BREEAM not only use fewer resources but also:

  • attract serious, long-term tenants,

  • achieve higher rental rates,

  • offer lower operational costs.

In Serbia, demand for energy-efficient buildings is on the rise — both from foreign investors and local companies looking to modernize their operations.

 S – Social: Creating a Healthy and Productive Work Environment

More and more companies — especially in IT, finance, and creative industries — are seeking office spaces that offer:

  • natural lighting,

  • good acoustics,

  • clean air and ventilation,

  • relaxation and break zones,

  • access to bike paths and public transportation.

In this context, a building is no longer just a shell — it becomes a tool for productivity and employee well-being, which directly influences leasing decisions.

 G – Governance: Transparent and Responsible Property Management

Investors and tenants are increasingly evaluating how a property is managed:

  • Is maintenance regular and transparent?

  • Are investments being made in safety, digital infrastructure, and waste management?

  • Is the owner compliant with applicable laws and professional standards?

This is especially important for EU-based tenants who follow internal ESG guidelines.

How ESG Is Changing the Market

  • For property owners: ESG standards are becoming a competitive advantage. Upgrading buildings toward more sustainable models can increase value and attract higher-quality tenants.

  • For tenants: ESG-friendly buildings have become part of employer branding — especially for attracting young, educated professionals.

  • For investors: Properties with ESG potential are better positioned for evaluation and financing.

  • For real estate platforms and advertising: ESG features are becoming key selling points in listings. Terms like “green building,” “energy-efficient office,” or “LEED-certified” are increasingly used in search filters.

 

ESG is no longer a trend — it's the new standard in commercial real estate. Although Serbia is still catching up, all market participants — from developers and landlords to advertisers and fit-out companies — must acknowledge the growing importance of ESG to remain competitive.

Investing in sustainability, employee wellbeing, and transparent management today leads to higher value, stronger demand, and more secure revenue tomorrow — and now is the time to embrace the shift.