Sustainability takes centre stage in UK commercial property
PROPERTY
Sustainability focus – Sanderson Weatherall ’ s Kyle Frith .
Sustainability takes centre stage in UK commercial property
Green is good business
Sanderson Weatherall partner David Fairley will be working closely with Kyle to further develop the firm ’ s sustainability consultancy offering to its Teesside clients .
Kyle Frith , head of sustainability at Sanderson Weatherall , explains why sustainability is key in the UK ’ s commercial property market ...
The UK commercial property landscape is undergoing a dramatic transformation . Sustainability has evolved from a ‘ nice-to-have ’ to a ‘ must-have ’, becoming a critical factor in successful property investment and management .
A powerful combination of stricter regulations , evolving tenant demands and growing investor awareness is driving this shift , making sustainable practices nonnegotiable .
Regulation and its rippling effects The UK government ’ s commitment to enhanced energy efficiency is evident in its increasingly rigorous Minimum Energy Efficiency Standards ( MEES ). Noncompliance not only carries the risk of substantial fines but also renders properties unlettable .
With the minimum EPC rating target escalating to ‘ C ’ by 2027 and ‘ B ’ by 2030 , building owners face mounting pressure to implement necessary upgrades and retrofits . Beyond EPCs , a broader spectrum of regulations concerning building materials , waste management and overall environmental impact further reinforces the critical nature of sustainable operations .
The market speaks Tenant preferences are a significant catalyst for change . Businesses are increasingly prioritising eco-conscious spaces , seeking energy-efficient buildings to curtail operating costs and demonstrate their dedication to corporate social responsibility .
This preference gives more energy efficient properties a distinct competitive advantage , often translating into higher rental yields and longer lease agreements .
Concurrently , investors are incorporating environmental , social and governance ( ESG ) considerations into their investment strategies . Sustainable assets are perceived as less risky , promising potentially stronger returns due to reduced operational expenses and consistent tenant demand . The emergence of “ green leases ”, incorporating clauses focused on collaborative efforts between landlords and tenants to enhance environmental performance , further cements this trend .
Financial and operational upsides The advantages of sustainability extend beyond regulatory compliance and market appeal . Energy-efficient technologies , such as LED lighting and advanced HVAC systems , deliver considerable cost savings for both landlords and tenants through lower utility bills . Sustainable waste management strategies also contribute to a reduction in operating expenses .
Future-proofing and building resilience Sustainable buildings are designed with long-term viability in mind . They are inherently more resilient to the effects of climate change , including extreme weather events , safeguarding the long-term value of the asset . Moreover , the inherent adaptability of sustainable design allows these buildings to evolve with changing needs and future regulatory adjustments .
Brand enhancement and social responsibility In today ’ s socially aware climate , businesses understand the importance of showcasing their commitment to sustainability . Occupying an environmentally-friendly building enhances a company ’ s brand
image and resonates with the expectations of customers , employees and investors who increasingly demand responsible business conduct .
Environmental benefits and global impact Beyond the individual business case , sustainability in commercial property contributes to wider environmental objectives . Sustainable practices play a vital role in reducing the carbon footprint of buildings , contributing significantly to the UK ’ s net zero targets . The efficient use of resources in sustainable buildings further minimises their impact on the planet .
In conclusion Sustainability is no longer a peripheral concern in the UK commercial property market ; it is a central pillar .
Driven by a potent mix of regulation , market dynamics , cost efficiencies , risk mitigation and a heightened awareness of environmental responsibility , sustainability is fundamentally reshaping the industry .
Businesses that embrace sustainable practices are not only fulfilling regulatory obligations and attracting tenants and investors but also securing their long-term prosperity in an increasingly eco-conscious world .
Sanderson Weatherall provide property consultancy services for owners , occupiers , investors , developers and financial advisors of property and associated assets . Scan the QR code to find out more .
The voice of business in the Tees region | 67