Retail Parks and Warehouses: A Revival with Opportunity
One fact stands out: energy used to heat and power commercial buildings accounts for around 12% of the UK’s carbon emissions annually. This underscores why upgrading our existing building stock is critical—not just for landlords but for achieving national climate goals.
Retail spaces took a hit during the pandemic, but out-of-town retail parks and destination shopping centres are making a comeback. With many of these sites combining retail, leisure, and dining, they present significant opportunities for energy upgrades. The warehouse and industrial sectors are equally active, driven by lease renewals and EPC requirements. However, these projects often demand creative problem-solving. Many landlords overlook basic building fabric improvements, putting the onus on consultants like us to find innovative ways to meet energy performance targets. The industrial property market is growing, with a 6% year-on-year increase. Nearly 40% of landlords have flagged energy efficiency as a top priority in the next year.
Energy Efficiency: Meeting New Standards
Energy efficiency has become a top priority for landlords as we approach the 2030 deadline, which requires buildings to achieve at least a B EPC rating. It’s estimated that 15% of commercial properties could become unlettable if they don’t meet these requirements. This has sparked a surge in investment and upgrades, as landlords seek to avoid stranded assets in their portfolios. One of the most significant shifts is the adoption of heat pumps and energy efficient systems, critical for reducing carbon emissions. However, retrofitting and upgrades can be challenging. At times, functional systems are replaced solely to meet EPC targets, which raises concerns about waste and long-term sustainability. At our consultancy, we pride ourselves on helping clients use their existing buildings more efficiently, avoiding the need to rip out and start again. This approach reduces unnecessary waste, keeps costs in check, and minimises the carbon footprint of projects. Our EPC Plus approach addresses these challenges by looking beyond short-term compliance. It integrates energy efficiency with future-focused designs, helping landlords not only meet today’s standards but also ensure their buildings remain viable in the future.
Healthcare, Housing, and Public Sector Projects
Refurbishments are on the rise in healthcare facilities, student accommodations, and public sector buildings. Local councils often have access to decarbonisation funding but lack the expertise to implement these plans effectively. This is where we, as consultants, step in—offering practical solutions to turn ambitious goals into reality. One standout example is the Ministry of Justice’s prison refurbishment projects, which highlight the growing role of the public sector in sustainability. These projects show that even traditionally overlooked areas are starting to prioritise energy efficiency and decarbonisation. A growing trend we’ve seen is the conversion of offices into residential use. These projects, which were once sidelined, are firmly back on the agenda for many landlords. They repre- sent a practical way to adapt underperforming assets while addressing housing shortages—a win-win.
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THE LEGAL CORNER MAGAZINE | ISSUE 11 ARPIL '25 HB
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