Member Article

Commercial impact of being green

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With climate change still high on the agenda, 2008 can expect to see some significant changes to the regulation of businesses.

From 6 April 2008 all new or leased buildings that comprise of more than 10,000 sq metres will be required to have an Energy Performance Certificate (‘EPC’). This certificate is similar to those produced for white goods and will indicate the energy efficiency of a building based on various measured factors including heating, lighting, carbon dioxide emissions and insulation. Based on this certificate buildings will be given a rating A through to G, the idea being that the better the rating the lower the fuel bills, therefore making the building potentially more attractive to commercial tenants. The requirement of the EPC will be triggered by the sale of the building or the grant of a lease or sublease. By 1 October 2008 all owners of “commercial buildings” will be required to produce EPCs when selling or leasing a property, with the scheme being brought in in phases through the year.

Although the government are currently focused on making residential buildings zero-carbon, there has been an indication that the focus will shift to take in commercial buildings as well, following a similar format to that currently employed in France where a 71,000 sq metre zero-carbon office building is being built. Added to this a study published by The Confederation of British Industry and GVA Grimley in January this year indicated that companies would be willing to pay higher rents for greener buildings in an effort to reduce energy costs.

Given that higher energy efficiency standards are also being introduced on new buildings it may pay in the long run to be greener.

If you have any queries regarding this article or any other property related issue please do not hesitate to contact Laura Keegan on laura.keegan@watsonburton.com.

This was posted in Bdaily's Members' News section by Ruth Mitchell .