MEES and commercial property

Minimum Energy Efficiency Standards (MEES), commercial properties have required an Energy Performance Certificate (EPC)

Commercial premises require an EPC grade of E or above.  According to the Estates Gazette:

‘From 1st April 2023, commercial buildings that do not have an EPC rating of E or above will not be able to be bought, sold or leased under government regulations.  From 2027, this rises to C and by 2030 to B.  Businesses that fail to reach those targets will join the growing list of stranded assets.’

Below are some forecasted losses related to business premises failing to reach minimum EPC grades:

South West Sq ft failing Potential rental loss
2023 10.8m 157.7m
2027 24.7m 349.7m
2030 37.3m 528.2m

Source: Estates Gazette UK Cities Investor Guide Spring 2023

MEES and commercial property

Below are some typical EPC Assessors recommendations to improve the energy performance of your premises, which save fuel and money, allowing your premises to achieve or exceed the minimum EPC grade:

  • Internal or external wall insulation
  • Floor insulation
  • Loft insulation
  • Low energy lighting
  • Increase hot water cylinder insulation
  • Heating controls
  • Replace boiler with new condensing boiler
  • Replace single glazed windows with low-E double glazed windows
  • Solar photovoltaic panels

The EPC assessor’s report will often suggest more than one of the above measures to help improve energy efficiency.  If more than one recommendation is made, it is worth asking a Building Surveyor which recommendations will allow your premises to reach the required grade, as achieving this may not require all measures to be completed.  A Building Surveyor can advise on the following:

  • Implementation of the greatest energy performance improvement for the least cost
  • The energy performance improvement implementation which causes the minimum business disruption
  • the feasibility for your property to achieve a pass grade
  • How to achieve greater energy efficiency and lower energy bills for the whole premises.

Once the appropriate energy efficiency improvements have been chosen, a Building Surveyor can also assist with the management of their implementation.

Vickery Holman are the leading property consultancy in the South West, with around 80 people based out of offices in Bristol, Exeter, Plymouth and Truro. Our services include commercial agency, building surveying, development, investment, property management, business rates and lease advisory. We also have the largest team of RICS Registered Valuers in the South West for secured and non-secured valuation work.

By Rees Jenkins

Building Surveyor

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