Spec Finish

Feature 18 www.thefis.org RETROFIT FIRST , NOT RETROFIT ONLY SpecFinish talks to Charles Begley , Chief Executive at London Property Alliance about the key findings of the Retrofit First, Not Retrofit Only: A focus on the retrofit and redevelopment of 20th century buildings paper. T HE paper reviews the current challenges and opportunities faced by central London policymakers and property owners in the race to decarbonise commercial buildings to ensure London becomes a net zero city. The report aims to bring greater clarity to planning and investment criteria, which ultimately underpins future development, pinpointing key considerations in determining the best approach taken from case studies and real- world experience. Charles explained central London is a major driver of economic growth and prosperity. But success comes at a cost in the form of elevated greenhouse gas (GHG) emissions. Our buildings, and particularly how we use them, are major contributors. Tackling climate change has rightly risen to the top of the political agenda, and the property sector, like many others, is grappling to play its part in reducing its carbon footprint. Charles said: “Reducing energy use in buildings is a fundamental component in central London’s carbon reduction strategy, and new developments are able to adhere to the stringent energy and carbon requirements of the Mayor’s London Plan which is targeting 2030 for London to be a net zero carbon (NZC) city”. A timely intervention Charles goes on to explain that the report navigates the complexity of decarbonising our built environment, as the path we take to reach our net zero carbon ambitions is not straightforward. He said: “We can only achieve these by working together. We hope that the analysis and recommendations presented serve to accelerate the transition towards a zero-carbon built environment in central London”. Net zero carbon: challenges and opportunities for commercial building stock Charles said: “Buildings account for around 78% of GHG emissions generated in London. As the need to address global climate change becomes more pressing, regulatory and policy drivers for commercial building retrofit are being pushed forward by UK Government, the Greater London Authority and an increasing number of London’s borough councils. For example, most stock with an EPC rating below ‘C’ - will need to be upgraded before 2027 to continue to be lettable. To meet the UK’s 2050 net zero emissions goal, buildings will need to be almost completely decarbonised through energy efficiency improvements, the phasing out of fossil fuel-based heating systems and the integration of smart technologies. “Demand for low and/or zero carbon assets is also rising at pace across key UK office markets, driven by both occupiers and investors. Whilst corporates are aligning leasing strategy with their carbon reduction commitments and seeking to occupy buildings that support greater employee wellbeing and productivity, a significant majority of global real estate investors report that sustainability is a key consideration for investment decision-making. “Upgrading the commercial building stock to achieve net zero carbon standards presents both challenges and opportunities for developers, and each building presents a unique set of location based, physical and historical characteristics. Net zero carbon retrofit is far more likely to be technically viable and commercially attractive for buildings which present good overall architectural quality; foundations and structure that meet modern robustness requirements, height expectations, and a floorplate configuration that allows for flexibility for extension and modernisation. Conversely, for buildings with poor quality design, construction and materials; sub-optimal floor to ceiling heights, poor accessibility and/or inflexible layouts, redevelopment may prove to be a more effective approach to meet carbon reduction goals and create an attractive product that is more likely to maintain its market value over time. Furthermore, a stock of attractive buildings is crucial to the overall attractiveness and competitive positioning of London as a place to employ people and invest”. Retrofit first, not retrofit only Charles said: “We consider that both retrofit and redevelopment can be valid approaches to delivering net zero carbon buildings, and that a ‘retrofit first’, rather than ‘retrofit only’ stance should be adopted by property owners and policymakers”. He explained that case studies submitted by members of Westminster Property Association and City Property Association last year were analysed and formed a key part of the report. The case studies demonstrate the importance of allowing flexibility to deliver net zero carbon through both retrofit and redevelopment approaches. They provide useful examples of the typical challenges and opportunities associated with converting the 20th century commercial building stock to net zero carbon standards, the types of interventions - including the use of innovative design and construction methods - that can be effectively deployed, and provide key learnings for future projects. Combined with wider knowledge of net zero carbon projects completed or underway in central London, the case studies enabled JLL to draw out key findings on the drivers, decision-making processes and outcomes for net zero carbon retrofit and redevelopment schemes, as summarised on the next page. Charles Begley, Chief Executive at London Property Alliance