Approximately 128 million square feet of U.K. warehouse space, 18 percent of all units above 50,000 square feet, will fail to meet minimum EPC requirements by 2027 and risk becoming unleasable, according to Knight Frank. This number triples to 404 million square feet, or 60 percent of warehouse space, when considering the minimum EPC B requirement by 2030.
The prevalence of older, underperforming stock and its potential for obsolescence could further exacerbate the ongoing undersupply of logistics space, with development activity slowing and large multinational occupiers increasingly seeking more modern, energy-efficient facilities enabling them to meet ESG goals, reduce operational costs and embed technological solutions.
In Wales, just 24 percent of warehouses over 50,000 square feet meet the EPC B grade minimum, with marginally higher rates in the Northeast (33 percent), Northwest (39 percent), and Yorkshire and The Humber (40 percent). This highlights the need to a
