Almost 20 million square feet of London’s office space, equivalent to nearly 10% of the capital’s office stock could become obsolete by 2023 due to a low energy efficiency rating.
New research by the professional services and investment management firm Colliers finds that these offices have currently an Energy Performance Certificate (EPC) rating of F or G and could be unusable in two years when the new Minimum Energy Efficiency Standard regulation will come into effect.
The study also shows that nearly 20% of central London offices can be classed as A and B on the EPC rating with an estimated 57% falling into the D to G categories.
Tom Wildash, Co-Head of the West End Leasing team at Colliers, said: “One benefit of the pandemic is that it has brought the environmental and wellness credentials of offices to the fore amongst investors, owners and occupiers alike.
“It is imperative that those owners of offices with low EPC ratings spend the next 18 months on comprehensive refurbishment plans to avoid being left behind and unable to attract new tenants.”
Recently, a new analysis by the insurer Zurich UK suggested that climate change could pose a critical risk to the UK’s office-to-home conversions.