Commercial Property
Ready for a year of change
AS the sustainability agenda
continues to move on,
2008 is shaping up to be a
year of significant
change for the commercial
property industry.
Along with changes to empty property
relief comes the introduction of
Energy Performance Certificates
(EPCs) which, by October this year,
will be required on the construction
or disposal of most commercial properties.
David Fairley, associate director of
building consultancy at Sanderson
Weatherall's Teesside office, said:
"The last 12 months has seen a considerable
increase in awareness of
the need to incorporate sustainable
features into building design and this
trend is evident in the North-East,
with schemes such as Longtens Way
at Newton Aycliffe and Lingfield
Point in Darlington leading the way.
However, while most developers support
the need for a sustainable approach
in the development market,
this needs to be tempered by the need
for commercial viability.
"Tenants are increasingly stipulating
that any prospective premises be
energy efficient to ensure their own
corporate social responsibility agendas
are met, although it could take
time for this to feed through to
rentals."
The new certification is used to
rate a building's energy efficiency on
a scale from A to G, similar to the way
in which white goods are currently
ranked.
On April 6, the first phase of the
legislation came into force and EPCs
are now required for the sale or rent
of commercial buildings with a floor
space in excess of 10,000 sq m, as well
as for all new schemes at construction
stage. By July 1, this
will be extended to include
buildings over 2,500 sq m and
then finally on October 1, all buildings
over 50 sq m will be affected.
Once complete, an EPC will remain
valid for ten years and will be referred
to in each subsequent sale or letting
of the given building.
There is currently a shortage of
qualified energy assessors to evaluate
a building's performance and as a
result, some transitional provisions
have been made by the government
while the assessors are being trained.
This means that, until October 1,
buildings that are on the market before
the certificate entry dates, and
remain so afterwards, will not require
an EPC until the exchange of contracts.
David Fairley is currently being
trained up to assessor standard. He
added: "The certificates could have
an impact on the pace of future development,
as the process is likely to
increase the cost of new construction
and refurbishment schemes - something
that will have to be factored in
when selling or leasing a property.
This in turn could lead
to discussions on
whether or not it is the
tenant who is obligated
to pay for the EPC,
whether via the service
charge or in an increased
rental value,
or indeed the landlord
who should meet
these costs in full.
"We do believe that
developers who proactively
address the
green agenda will enhance
the value of
standing property investments,
while also
increasing the marketability
of their assets
in the investment
arena."
10:44am Tuesday 29th April 2008
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