What the government’s commercial non-domestic EPC B pledge means for real estate

0887-SK-Arup-1Triton-003 (1)

Source: Simon Kennedy

Ministers want all commercial non-domestic buildings to meet EPC B by 2030. But what work might be required and how much could it cost?

0887-SK-Arup-1Triton-003 (1)

Source: Simon Kennedy

British Land undertook a complete overhaul of One Triton Square which brought it up to the highest possible sustainability standard: BREEAM Outstanding

01 / The scale of the challenge

The Minimum Energy Efficiency Standards (MEES) have been in force since 2018 and to date have required buildings to attain at least an E rating before they can be let to new tenants. From April this year, the rule applies to existing tenancies.

Data from the Department for Levelling Up, Housing and Communities reveals that 70% of office space in the City of London currently has an EPC rating of less than B. This essentially means that 75 million ft2 of space will need upgrading over the next seven years. The table below shows that the story is similar across the rest of London.

The EPC rating of non-domestic buildings across all of central London has shown incremental improvement as the MEES has tightened its requirements over time. Figure 1 clearly shows the near abolition of EPC F and G rated space; however, it also reveals a large number of C and D rated buildings.

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