Recent research by CBRE UK reveals that up to 11.9 million square feet of office space to be put on the central London market by 2027 has an EPC lower than C, which categorizes the spaces as energy inefficient.
CBRE estimates that it would cost up to £370 million ($403 million) to retrofit and upgrade these office buildings to meet energy-efficient standards.
If such energy-inefficient office stock is not upgraded, the properties will likely lose a significant amount of their capital value, particularly in comparison to upgraded stock, which should have resilient capital values.
“Even though building upgrades may not immediately pay for themselves in terms of operational savings, it’s likely that on average the renewed occupier and investor interest they bring will result in a stronger investment performance that quickly outweighs upgrade costs,” said Sam Carson, head of sustainability valuation and advisory services, CBRE UK.
CBRE’s Sustainabili
