A Challenge for the Industry - Retrofit Britain

LONDON / AGILITYPR.NEWS / September 06, 2024 / How to Retrofit Unsustainable Commercial Buildings

And why landlords will be stranded if they don’t.  

From housebuilding to hospitals, the industry is abuzz with new ideas about sustainable buildings. 

There is less talk about the UK’s existing, mostly carbon-unfriendly commercial buildings, particularly those unloved ones struggling to find tenants in a post-Covid agile age. 

When Watts attended the zero carbon property conference Foot Print 2024, the focus was firmly on new builds such as the Velindre Cancer Centre in Wales where local materials are being sourced for construction and the Sara Cultural Centre in Skelleftea, Sweden, which at 75m is one of the tallest timber buildings in the world and a carbon negative template for high rise construction.

It wasn’t all about new builds. On Foot Print’s retrofit stage, we heard from John Christopher, a campaigning architect who has retrofitted 2,000 homes in his home town of Balsall Heath using a little-known pot of local authority money.

These and other examples are seriously impressive, but what about commercial buildings?

What can be done to retrofit commercial stock in the UK, and why do landlords and the industry need to face up to the challenge?

Long way to go

The UK’s 1.6m commercial buildings burn around a third of the country's energy use, some 141TwH a year. Much of it is wasted.

That has put the sector in the crosshairs for regulators seeking to meet Britain’s carbon target. The government’s Minimum Energy Efficiency Standard states that by 2030 commercial properties must achieve an EPC energy rating of B or they cannot be let. Yet, according to a survey by Savills last year (2023), 87% of UK office stock rates C or below. 

Clearly, the industry must act. Of course, it is the right thing to do for the environment, but there is now a business imperative to ensure the longevity of commercial property assets and values in London and across the UK. 

Stranded not so far from home

Assuming the 2030 deadline remains, landlords with substandard properties will be left with stranded assets. 

The impact for owners, investors and occupiers will be seismic.

“Stranded assets have suffered from unanticipated or premature write-downs, devaluations or conversion to liabilities … caused by environment-related risks that are poorly understood and regularly mispriced, resulting in significant over-exposure to environmentally unsustainable assets throughout our financial and economic systems.” - Smith School of Enterprise and the Environment.

It can be done 3: Future-proofing commercial

Watts attended a presentation from investment trust Shaftesbury Capital who are breaking new ground on the retrofit of commercial assets in London. 

In 2014, it delivered 22 Ganton Street, in London’s Soho district.

Taking an original 1920s build, the team retained 99% of the structure, 80% of the façade and most of the woodwork, including the roof. Environmental impacts have been limited by recycled materials. The retrofit building achieved EPC B and a BREEAM Very Good rating.

Not only is it future-proofed against the impending MEES standards, but the rental value has also increased.

The project shows it is possible to retrofit a commercial building now that will meet environmental standards down the line. 

There may be trouble ahead

If you have a commercial property, what do you need to be thinking about to make it 2030-ready?

Shaftesbury Capital advise on early engagement, reviewing the project’s potential sustainability as early as RIBA Stage 1.

Naturally, as well as opportunities, there are potential pitfalls so it’s important to understand the risks.

Here’s a guide to the challenges in retrofitting an existing asset.

1.  Survey the existing structure

If you plan to retain most of an existing building through a retrofit, review its condition. Underlying issues with the structure or fabric of a building are often not immediately apparent. So carry out extensive survey work early in the process to mitigate this risk. 

2.  Understand fire safety requirements

Fire safety requirements can limit the scope of a retrofit. Some requirements, such as a secondary means of escape, are simply not feasible in some existing structures. It’s important to understand how the BS9999 Code relates to the planned use of the building. Significantly increasing the occupation of a building or adding additional floors are key risks that need to be monitored. 

3.  Identify and deal with hazardous materials 

It’s important to identify hazardous materials and condemned areas. An extensive survey should identify risks such as asbestos or reinforced autoclaved aerated concrete.

4.  Be aware of planning and heritage restrictions

With listed buildings, planning can be a tougher-than-usual challenge. For example, you may be required to retain existing windows. These items must be picked up early in the design process, and early engagement with planning officers is required. In your favour when dealing with planners and conservationists is that retrofit is a way to retain listed buildings while making them suitable and profitable for the future.

5.  Use a consultant to assess energy requirements and connectivity

It can be difficult to get the energy and connectivity you need into an antiquated building but there are ways to do this, and there are many consultancies in this field. Use in-house or consultancy expertise early in the design process to analyse the building’s future use, its existing infrastructure and the technology you’ll need.

Exciting future 

At Watts, we are excited to work with our clients to take on the challenge of retrofitting existing stock to support the UK’s carbon targets and make our commercial buildings profitable and fit-for-purpose for the next generation.

• Foot Print https://www.footprintplus.com/
• Shaftesbury Capital https://www.shaftesburycapital.com/en/index.html
• Smith School of Enterprise and the Environment https://www.smithschool.ox.ac.uk/
• Savills https://www.savills.co.uk/
• MEES https://www.gov.uk/guidance/domestic-private-rented-property-minimum-energy-efficiency-standard-landlord-guidance