Energy efficiency overhaul for commercial floor space – report

REAL estate advisor Savills has estimated that 700m sq ft of commercial floor space may need to undergo an energy efficiency overhaul by 2018, 11.7m sq ft of which is located in Leeds. 

Savills’ ‘Opportunities in Green’ report explores the impact of private rented sector regulations which form part of the 2011 revised Energy Bill.

The firm suggests that the issue of a requirement to upgrade private rented properties to an EPC rating of grade ‘E’ or above will be most pertinent in London. 
Savills says that due to a large number of lease renewals anticipated to come to the market in the next five years, landlords left with vacant space would be advised to take the opportunity to improve the energy performance of their property. 

According to DECC (Department of Energy & Climate Change) 62% of non domestic properties are rented and of this figure 18% have a rating below grade ‘E’.

Stephen Throp, director of building consultancy at Savills Leeds, said: “If the legislation goes through, leasing of a sub grade E standard property will become unlawful from April  2018. 

“Although upfront payment issues to enable energy consumers to improve their property are considered within the government’s proposals under The Green Deal financing framework, in practice there are many issues still to be resolved such as recovering charges incurred during void periods or in multi tenanted properties which could raise concerns and needs close examination.”