Overview

Sustainability is no longer optional in commercial property. With the UK’s Net Zero targets and investor demand for ESG-compliant assets, landlords face growing pressure to upgrade their buildings. In this article, the Bressummer A.R.K team explore how to future-proof commercial buildings to remain compliant, competitive and attractive to tenants, while also protecting asset value in an evolving regulatory landscape.

Commercial Property & Net Zero

Commercial property is at the forefront of the UK’s journey to Net Zero. Energy consumption, carbon emissions and compliance obligations are shaping how buildings are valued and let.

For landlords, this presents both risk and opportunity. Failure to act could leave properties stranded, unable to be legally let or unattractive to tenants. But proactive investment in sustainability and ESG (Environmental, Social, Governance) measures can enhance long-term value and appeal.

The question is, how can landlords ensure their buildings remain fit for the future?

 

The Changing Landscape of Commercial Property

There has been a notable tightening of minimum rating of EPCs, governed by the Minimum Energy Efficiency Standards (MEES) Regulations, of late. Since April 2023, commercial properties with an EPC below ‘E’ cannot legally be let.

Indeed, proposals for the future suggest a potential increase to a minimum ‘C’ or even ‘B’ rating by 2030 might be on the cards.

 

Investor and Tenant Expectations

We are seeing corporate tenants increasingly demand sustainable premises as part of their ESG commitments.

This is leading to investors and lenders favouring greener portfolios.

Buildings that fail on ESG can deter occupiers, reduce rentability and lose long-term value. Not great for your investment prospects.

Practical Steps to Future-Proof Your Building

To avoid this scenario, what can you do? The Bressummer A.R.K team have put together a checklist of 5 actions you can take.

 

  1. Improve Energy Efficiency
  • Upgrade heating, ventilation and air conditioning (HVAC) systems.
  • Invest in insulation, glazing and LED lighting.
  • Consider renewable energy sources such as solar panels

 

  1. Conduct a Sustainability Audit
  • Commission surveys to identify energy inefficiencies and carbon hotspots. Planned Preventative Maintenance (PPM) surveys can also integrate sustainability planning.
  1. Focus on Materials and Fit-Outs
  • Use sustainable, low-carbon materials for refurbishments.
  • Encourage tenants to adopt green fit-outs and recycling practices.

 

  1. Embrace Smart Building Technology
  • Install sensors to monitor energy usage in real time.
  • Use building management systems to reduce waste and improve efficiency.

 

  1. Incorporate ESG into Lease Structures
  • ‘Green leases’ include provisions requiring both landlord and tenant to work towards sustainability targets.
  • These clauses can cover waste management, energy efficiency and shared environmental responsibilities.

Benefits of Future-Proofing for Landlords

There are many benefits to future-proofing for landlords.

 

  1. Compliance and Risk Management

Proactive upgrades reduce the risk of regulatory breaches and void periods caused by non-compliant assets.

 

  1. Stronger Tenant Demand

Sustainability is increasingly a tenant selection factor. Green buildings attract high-quality, long-term occupiers.

  1. Enhanced Asset Value

Energy-efficient, ESG-compliant buildings are more attractive to investors and retain market value.

 

  1. Reduced Operating Costs

Efficiency upgrades lower energy bills and service charges, making properties more appealing to tenants.

Common Landlord Challenges

Implementing some, if not all, of the actions above may look unappealing due to the investment required. However, the benefits over the short and longer-term are considerable and there are ways to mitigate some of the more common landlord objections.

Upfront cost of upgrades: While improvements require capital, phased programmes and government incentives (tax reliefs) can ease the burden.

Balancing landlord and tenant interests: Green leases provide a framework for shared responsibility, easing the onus on the landlord exclusively.

Uncertainty about future standards: Aiming above minimum compliance now avoids repeated and expensive retrofitting later.

Preparing Your Building For The Future

The push towards Net Zero and ESG compliance is reshaping the commercial property market. For landlords, the message is clear: adapt now or risk being left behind.

Future-proofing is not just about avoiding penalties, it’s about staying competitive, attracting tenants and protecting long-term asset value. The sooner action is taken, the greater the rewards.

If you are looking to future-proof your commercial property, Bressummer ARK can help.

Talk to us about surveys, sustainability audits and strategic advice to align your building with Net Zero and ESG requirements. Contact us today on 023 8212 8803 or email sales@bressummerark.co.uk to protect your investment.

Featured FAQs

  • Q: What does future-proofing a commercial building mean?

    It means upgrading and managing a property to meet upcoming Net Zero and ESG standards, ensuring compliance, tenant appeal and long-term value.

  • Q: Do landlords have to upgrade properties below EPC ‘E’?

    Yes. Since April 2023, it has been unlawful to let properties below ‘E’ unless exempt. Further tightening is expected.

  • Q: What is a green lease?

    A lease that includes clauses requiring both landlord and tenant to pursue sustainable practices such as energy efficiency and waste reduction.

  • Q: What are the benefits of future-proofing?

    Compliance, reduced risk of voids, stronger tenant demand, higher asset value and lower operating costs.

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