Three-quarters of Belfast office space could be obsolete by 2030 due to energy efficiency legislation, according to the Northern Ireland branch of real estate group CBRE.
CBRE NI issued a “stark warning” regarding Energy Performance Certificate (EPC) regulations in England and Wales, should they take effect in the North.
In April last year, the minimum EPC rating for commercial buildings being sold, leased or rented across England and Wales was raised to ‘E’, and it is expected the minimum rating will increase to ‘B’ by 2030.
Addressing CBRE NI’s annual commercial property outlook event at ICC Belfast, managing director Brian Lavery said it is “only a matter of time” before the regulations take effect in Northern Ireland and cause a “seismic shift” in Belfast’s commercial property sector.
“With our research indicating only 25 per cent of Belfast’s large office buildings are currently rated EPC ‘A’ or ‘B’, property owners and investors are faced with a stark choice: either make substantial investments to bring properties up to speed with EPC and ESG requirements or contemplate changing the use of these buildings altogether,” he said.
“With regulatory change inevitable, it is imperative that landlords of older commercial stock act now to implement ESG strategies or risk being left with properties that are unlettable or difficult to market successfully,” he added.
Keynote speaker at the sustainability-themed event, executive vice-chair and co-founder of the Eden Project Sir Timothy Smit KBE said the “looming crisis” in the commercial property market “requires bold action but presents unrivalled opportunity”. Sir Timothy was recognised for his contribution to sustainability and the environment.
“By embracing change and acting fast on ESG, Northern Ireland could put itself at the forefront of a new green energy enlightenment. Cities and towns in Northern Ireland could become beacons of best practice, encouraging innovators and investors to these shores and instilling confidence in all who live here,” he said.
In partnership with FPM Accountants, CBRE NI has formed a consortium of experts to assist companies with ESG focused management of properties and estates.
CBRE’s lending team also manages the Northern Ireland Investment Fund (NIIF), which provides debt funding for commercial property, regeneration and low carbon projects in Northern Ireland.
A total of £150 million (€176 million) has been provided to the fund by the Northern Ireland Department of Finance. The fund is now in its investment phase and open for applications from viable projects.
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