Consultancy WSP has stated in a new report that one in six commercial property blocks in the UK will fail energy efficiency standards, meaning that 17 per cent of the real estate available now could be abandoned for letting by 2018.
Under new guidelines in the Energy Act, commercial properties will have to have at least an 'E' rating on their Energy Performance Certificate (EPC) in order to be let, but the research has revealed that 17 per cent of office blocks do not even make the cut. If 'E' buildings are included in this count, it will be 35 per cent of the stock in the country.
WSP associate director Daniel Grandage said: "There is a significant threat to commercial property owners that they will lose income if they are not aware of, and do not react to, these changes.
“Although the regulations will not come into force until 2018, they are already having an impact with buyers now looking to invest in 'D' rated assets or above. It shows just how important it is to understand the risks that face your portfolio so that you can be prepared and take action.”
The figures are not so bad in the capital city, with 14 per cent of the commercial property there needing to be upgraded, three per cent lower than the national average. However, the figure will still be 35 per cent if 'E' rated sites are included.
It is important to note that as the guidelines on the EPCs are continually changed and upgraded, it may even be the case that 'D' and 'E' rated buildings this year will not meet the minimum standards required in five years' time. Companies should consider how they can make their buildings more energy-efficient.
The results are based on a sample of 4,000 EPCs across the UK.