An uncertain future lurking above a large office stock
A Colliers analysis showed that around 20 million square feet of London workspace, representing almost 10% of the total stock, are not compliant with upcoming energy efficiency rules.
About 10% of London offices could soon become unusable when new rules on energy efficiency are implemented, according to an analysis from a leading real estate company.
Under the new standards, set to be introduced in 2023, buildings in England and Wales with an energy efficiency rating lower than ‘E’ will not be able to close new leasings.
According to CNBC, the upcoming measures come as part of broader government efforts toward carbon neutrality. The lowest energy efficiency rating is set at ‘G,’ the least efficient, to ‘A,’ the most efficient.
In this context, an analysis published last week by Colliers showed that around 20 million square feet of London workspace, representing almost 10% of the total stock, are not compliant with these rules.
It raises questions about the future of these office blocks, particularly at a time when many workers are pushing to partly work from home amid the ongoing coronavirus pandemic.