Commercial Property Market Review | April 2024

25/04/2024

With industry standards rising, investors and occupiers in the UK logistics market are facing pressure to retrofit older properties to keep up with the high quality of new builds. If older buildings are not improved now, they risk being unusable in the coming years.

The reports states that the ‘flight to quality of demand has, inevitably, started to weigh on the letting prospects of older, poorer-quality second-hand stock.’

With the government intent on decarbonising the economy, the focus on Energy Performance Certificates (EPC) and Minimum Energy Efficiency Standards (MEES) have risen to prominence across all sectors of the commercial property market.

By 2027, the minimum EPC rating for existing commercial properties will be C, a building rating below this will be considered unsaleable and unlettable. While a few years later, in 2033, standards are likely to tighten (currently under consultation), applying to any property with an EPC rating under B. The report summarises, ‘While landlords will be wary of the tightening standards, retrofitting provides an excellent opportunity to meet these standards and future-proof warehouse assets.’

The latest news on the commercial property market can be found here in our April Commercial Property Market Review.

This article was written by Akmaral Parnell

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