Many commercial properties fail to meet minimum energy efficiency ratings

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By April 1 this year, all commercial property has to meet the Minimum Energy Efficiency Standard (MEES). However, many buildings have not complied with these standards, according to research.

To satisfy the new standards, buildings must have an Energy Performance Certificate (EPC) of band E or greater.

The imposition of MEES has been known for a while, but many landlords have not upgraded their commercial property energy efficiency. Research by arbnco, a software developer for the real estate market, revealed that 14.8% of the 3,620 buildings registered with them have EPC ratings at the lowest bands of F and G.

Simon West of arbnco said:

“For real estate investors with a large number of properties in their portfolio, the fact that almost 20% of buildings on our platform are performing worse than previously should come as a stark warning.

“It demonstrates how important it is for investors to continuously monitor and keep track of the properties in their portfolio.”

Buildings that do not comply with the energy efficiency standards will not be able to offer new leases. This could cause difficulties if buildings are vacant and landlords have to continue to make their commercial mortgage monthly repayments.

As a result of the publicity surrounding property energy efficiency ratings, some experts have predicted that there could be a green rental economy where commercial tenants prefer a high-rated EPC commercial property. Buildings rated in bands A and B will cost less in energy consumption and also satisfy tenants who are concerned about environmental issues.

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