This page contains a Flash digital edition of a book.
50


roundtable: commercial property


Slough-based property company SEGRO and The Business Magazine gathered sector experts to discuss the implications of the 2011 Energy Act, which aims to help the UK meet its EU commitment to reduce CO2 emissions by 34% by 2020 – but also brings major ramifications for landlords and occupiers of commercial property. How major? Within the European Union’s directive on Energy Performance of Buildings the UK has committed to significant improvement of its built stock. By 2018, the letting of buildings with an Energy Performance Certificate (EPC) rating of F or G will be outlawed. Buildings will need to be future-proofed. Those who delay will find themselves with commercially obsolete assets or an unexpectedly large bill for upgrading their portfolio


Can we meet this EU energy challenge? Participants


Kate Dean: Regional director, SEGRO


Robin Harris: Board member, CoreNet UK Chapter


Chris Castle: Equity director, EPR architects


Matthew Jones: Partner, Hoare Lea


Nigel Pavey: Director of engineering, ChapmanBDSP


Richard Griffiths: UK Green Building Council


Nick Coote: Head of Thames Valley team, Lambert Smith Hampton


James Finnis: Head of the South East office agency team, Jones Lang LaSalle


David Murray: Managing editor and publisher of The Business Magazine, chaired the discussion


Lined up to debate: our Roundtable team Journalist John Burbedge reports the roundtable highlights


The roundtable focused on recent SEGRO- commissioned research by the CoreNet Global UK Chapter on the 2011 Energy Act.


This research, predominantly among owners or occupiers of corporate real estate, highlighted:


• Poor sector awareness of the Act’s far- reaching implications


• Ambiguities and confusion for those who were Act-aware


• No concerted industrywide drive or timetable to upgrade buildings.


Beginning the discussion, David Murray asked the obvious question . . .


Did the results of the research surprise us?


"Sadly, No." was the consensus Roundtable response.


CoreNet’s Robin Harris admitted that the research confirmed his opinion that “most people aren’t sure what the Act is all about and how it might affect them. Even now, having read the report, I am still struggling as to who pays the bill for Green Deal funding – the occupier or the landlord. I think it is all a bit complicated.”


Kate Dean was also unsurprised by the lack of awareness and understanding because the Act had not been well publicised – despite


www.businessmag.co.uk


its potential implications for the property sector. “Property is not a vote-winner,” she noted.


James Finnis said Energy Performance Certificates (EPCs) were not high profile with occupiers. “Their current focus is the overall occupational cost of the building and the ability to attract the right talent to drive their business. Inevitably, if occupiers go into a new building it is likely to have a good EPC rating, but whether its an EPC rating of say C or D is not currently the fundamental decision-making factor, the actual in use energy spend is far more valuable.”


Nick Coote


Nick Coote, who advises on corporate real estate and is a member of CoreNet, agreed: “It is not on the radar of occupiers. They are driven primarily by the needs of their people.”


workstyles was leading occupiers to find better EPC-rated premises.


Coote explained that many occupiers now want to be on one floor, with an efficient open not cellular layout, which reduces the amount of space they need. “When an occupying business relocates from a 1990’s building, they choose premises to fit that modern profile and these tend to be newer, higher specification buildings with higher EPC ratings. The


occupiers are not actually motivated by the EPC. It’s just the current reality of the market.”


Ironically, trending towards modern


However, Lambert Smith Hampton now always flagged up EPC ratings to clients. “If it is a low E then we tell the occupier the possible consequences. Elevating from a low E upwards may well cost far more than a high E for instance.”


Richard Griffiths pointed out that 2018 was not far off in commercial lease terms, and he believed EPC legislation was being considered in many property negotiations. “Only yesterday an investment transaction, I was aware of, fell through because the building involved was poorly EPC rated.”


THE BUSINESS MAGAZINE – THAMES VALLEY – JUNE 2013


Page 1  |  Page 2  |  Page 3  |  Page 4  |  Page 5  |  Page 6  |  Page 7  |  Page 8  |  Page 9  |  Page 10  |  Page 11  |  Page 12  |  Page 13  |  Page 14  |  Page 15  |  Page 16  |  Page 17  |  Page 18  |  Page 19  |  Page 20  |  Page 21  |  Page 22  |  Page 23  |  Page 24  |  Page 25  |  Page 26  |  Page 27  |  Page 28  |  Page 29  |  Page 30  |  Page 31  |  Page 32  |  Page 33  |  Page 34  |  Page 35  |  Page 36  |  Page 37  |  Page 38  |  Page 39  |  Page 40  |  Page 41  |  Page 42  |  Page 43  |  Page 44  |  Page 45  |  Page 46  |  Page 47  |  Page 48  |  Page 49  |  Page 50  |  Page 51  |  Page 52  |  Page 53  |  Page 54  |  Page 55  |  Page 56  |  Page 57  |  Page 58  |  Page 59  |  Page 60