Challenges on the Ground
What’s Next for 2025?
The economic landscape is shifting, with rising interest rates and uncertainty impacting transactional movements. However, tenant and government demand for better energy performance is pushing landlords to act. For instance, 25% of tenants now refuse to lease buildings rated below a C, accelerating the pace of upgrades. While we’re seeing opportunities emerge, they often come with tighter budgets and shorter timelines. Despite this, there are reasons to be optimistic. The construction sector grew by 0.8% in Q3 2024, and business confidence in construction hit a three-year high, according to the ICAEW. "It's estimated that 15% of commercial properties could become unlettable if they don't meet the 2030 deadline which requires buildings to achieve at least a B EPC rating."
Looking ahead, a few trends stand out:
1. Energy-focused innovation: Stricter EPC requirements are driving smarter, more sustainable designs. 2. Retrofitting over rebuilding: Helping clients enhance their portfolios with minimal carbon impact. 3. Retail and industrial growth: The resurgence of retail parks and industrial units is fuelling energy upgrades. 4. Public sector leadership: Decarbonisation efforts in public sector projects, such as prison refurbishments, are setting the tone for broader change. These insights don’t come from an economist’s perspective or an analyst’s desk— they’re grounded in what we’re seeing every day as an SME working at the coalface of the industry. The challenges are real, but so are the opportunities. Our work is about more than compliance; it’s about building a sustainable future with crea- tive building services design. As we tackle the 2030 goals, we’re helping landlords and clients ensure their assets remain viable and aligned with evolving regulations. By embracing innovation and sustainability, we’re not just keeping up with change—we’re driving it.
g.lamb@fhpgroup.com
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