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."