Knight Frank publish latest report in Retrofit Series
Knight Frank report finds offices rated EPC C or below in London achieve rents that are, on average, 27% lower than prime levels.
The cost of inaction is clear… and growing.
In this latest report in Knight Franks sustainability series, they provide an in-depth exploration of the commercial property retrofit challenge, with an emphasis on the costs and benefits of improving energy efficiency and sustainability in UK office buildings.
Key Takeaways:
1. Rental Uplift and Amenity Impact:
Retrofitted/refurbished properties upgrading from EPC C or below to EPC B or above experience an average 18% rental uplift relative to prime rents.
Amenities such as outdoor spaces significantly boost rental value.
2. Cost of Inaction:
Offices rated EPC C or lower achieve rents around 27% below prime levels in London.
3. Retrofit Costs:
Improving an EPC D-rated building to EPC B may cost approximately £113 psf, with higher costs when additional amenities are included.
4. Reduced Void Periods:
High-sustainability buildings (e.g., EPC A-rated or BREEAM Excellent) are pre-let around six months earlier than lower-rated counterparts.
5. Ancillary Benefits:
Opportunities for renewable energy investments and enhanced asset liquidity are discussed.
6. Cost Considerations by Region:
Costs vary geographically, with London as the costliest and Wales as the least expensive.
At Vantage, our team are helping clients add deep portfolio value via sustainable retrofit and refurbishment strategies, delivering best-in-class buildings and spaces that maximise your portfolios potential.
Read the full report here: Meeting the Commercial Property Retrofit Challenge – Part 2: The Business Case for Action
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