2030 EPC Deadline – Is Your Asset Fit For Purpose?
Generating consistent financial returns from investment in physical retail space in the UK increasingly presents a significant challenge.
The Government’s requirement for all commercial non-domestic buildings to achieve an EPC B rating by 2030 adds a further hurdle for investors to negotiate. Over 80% of commercial space in the UK needs intervention to achieve the Government’s 2030 EPC B rating requirement.
This amounts to 1.4 billion sq. ft of retail space and includes 93% of shopping centres and 66% of retail park assets. And 2030 is not the end game. Nearly all commercial property needs attention to meet the Government’s 2050 net zero greenhouse gas emissions requirement, affecting both existing and new-build property. Costs for these upgrades are borne by the landlord, not the tenant, and penalties of up to £150,000 per breach can be enforced. And although 2030 may seem far off, it will take some assets many years to achieve the necessary standard. This pressure point creates a decisionpoint for landlords and investors. Does the future income my assets will generate in its current use substantiate the necessary costs to become compliant? Or, rather than just upgrading, should a more comprehensive change be carried out to maximise future value, potentially comprising change of use, extension or rebuild?
The combination of Introba, Pragma and Benoy is unique in the market, combining Introba’s expertise in engineering and sustainability, Pragma’s specialism in consumer and occupier research and analysis and Benoy’s design skills. The combination of these three companies working in tandem enables clients to efficiently and comprehensively answer the question about how to derive maximum value from an asset.