Tenants will inevitably consider all costs associated with occupation when making a decision on acquiring new or additional commercial property such as offices or industrial buildings. If energy costs are constantly increasing could this put downward pressure on rents or even put pressure on landlords to improve their existing buildings? The pressure is already on as there are currently proposals for all properties with an Energy Performance Certificate (EPC) rating of ‘F’ or lower to have to be brought up to ‘E’ by 2018 in order for any lease or sale to be completed on it. Does it follow that an improvement in EPC rating causes a decrease in energy costs?
Peterborough, promoting itself as the “UKs Environment Capital” is perhaps at the forefront of the “green” agenda, however we have not to date seen a huge “green” in the commercial property market. Providing ‘green’ buildings can come at some cost.
The additional cost will inevitably be reflected in the price a property is sold or rented for as otherwise development will not be viable. We are now starting to see “green” considerations in the development of office buildings with developers aiming to achieve at least BREEAM “very good” and one or two new schemes of industrial / warehouse units. Occupiers should not be put off by higher property prices but encouraged by lower running costs……..food for though