Much of the Installations and Logistics (I&L) sector could be deemed unlettable if planned Minimum Energy Efficiency Standard (MEES) regulations come into force.
Some 85% of sub-100k square feet I&L spaces could be unlettable because regulations scheduled to come into force in 2030 dictate that EPCs must reach a B level or higher.
Installations and logistics centres include warehouses, distribution centres and transportation systems.
The analysis comes from business parks business Potter Space, in partnership with Savills.
Jenna Strover, head of commercial delivery at Potter Space, said: “To prepare for the implementation of these new regulations we would recommend that landlords have their EPC reassessed to confirm accuracy following changes as a first step.
“There are a number of initiatives to consider such as upgrading to LED lighting or adopting rooftop solar that could help meet those EPC standards.
“Retrofitting is one possible solution, but this presents its own problems. It’s costly, it requires the displacement of tenants that may have nowhere else to go, and some facilities aren’t in good enough condition for extensive works.
“It’s also important to take a more holistic and innovative approach to sustainability, thinking about the bigger picture.
“If we made use of all available roof space within small to mid-box for photovoltaic (PV) panels, we could generate enough power to support 4.3 million homes.
“Our overall aim should be to create future-ready spaces that meet the needs of businesses and provide the environmental measures to support a greener future.”
By 2027, I&L facilities must have an EPC rating of at least C to be let. Currently, 47% of small to mid-box stock doesn’t meet this standard.