Bibliographic Details
| Title: |
Thousands of London Offices 'Risk Obsolescence' Under New Energy Efficiency Rules. |
| Authors: |
Rudgard, Olivia (AUTHOR) |
| Source: |
Bloomberg.com. 5/13/2026, pN.PAG-N.PAG. 1p. |
| Subject Terms: |
*Office buildings, *Assets (Accounting), *Real estate investment, *Energy consumption, *Real property, Metropolis |
| Geographic Terms: |
London (England), Westminster (London, England) |
| Abstract: |
The article focuses on the risk of large portions of London’s office properties becoming stranded assets due to impending energy efficiency regulations. According to property consultant Robert Irving Burns (RIB), 78% of offices in Westminster and 71% in the City of London are projected to fail the Minimum Energy Efficiency Standards (MEES) expected by the early 2030s, which require an Energy Performance Certificate (EPC) rating of at least "B." The significant capital investment needed, combined with labor and financing constraints, makes meeting these standards challenging for many landlords. This situation is creating a polarized office market where energy-efficient buildings command premium rents, while older, non-compliant offices face lower demand and longer vacancies. Some investors, including Blackstone Inc. and Brookfield Asset Management Ltd., are capitalizing on this by acquiring and upgrading properties to meet the new standards. [Extracted from the article] |
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| Database: |
Business Source Index |