Understanding the intricacies of commercial property in the UK can be a difficult task, especially when it comes to understanding the nuances of energy efficiency. At the heart of this is the Non Domestic Energy Performance Certificate, commonly referred to as the Commercial EPC. This essential document not only ensures compliance with the law but also offers extra benefits for property owners, potential buyers, and tenants alike. Let’s delve into the specifics of which commercial properties require an EPC and why it’s so crucial.
Types of Commercial Property That Need An EPC
If you’re dealing with commercial property in the UK, a Non Domestic Energy Performance Certificate, also known as a Commercial EPC, is a document that you’ll need. If you are selling, leasing or building a commercial space, its the law to have one.
Selling Or Renting
You’ll need a Commercial EPC to market the property. This is so potential buyers or tenants can see how well the building uses energy prior to moving in. The building will be given a rating between G (worst performing) and A (best performing) by your assessor.
New Build Commercial EPCs
Commercial EPC Assessors (Non Domestic Energy Assessors – NDEAs) are required to be involved at the design stage of any new build commercial property. They will produce a BRUKL report, or SBEM Calculations to make sure that the building complies with Building Regulations Part L. If the building is failing your assessor will show you what you need to do to comply.
There are a few situations where a Commercial EPC is not required. A few of these are
- Some listed buildings
- Temporary buildings with a planned use of two years or less
- Places of worship
- An industrial site, workshop or non-residential agricultural building that doesn’t use much energy
- Small detached buildings with a floor space of less than 50m2
- Buildings due to be demolished
For a full list of commercial EPC exemptions, see the government guidance.
Benefits of a Commercial EPC
Getting an EPC for a commercial building goes beyond just compliance with regulations. It will help you improve the sale or rental price, reduce the buildings running costs and cut carbon emissions.
Boost Your Properties Value
Buildings with a higher EPC score attract more potential buyers and tenants. With elevated competition for these properties, this increases their market price.
Reduction in Running Costs
Each EPC comes with building specific recommendations. These recommendations will detail the steps required to reduce energy bills. This will in turn cut the carbon emissions of the building too.
In the ever-evolving landscape of commercial real estate, staying informed and compliant is paramount. The Commercial EPC serves as a testament to a building’s energy efficiency, providing transparency for potential buyers and tenants. Beyond mere compliance, it offers actionable insights to enhance a property’s value, reduce operational costs, and contribute to a sustainable future. Whether you’re a seasoned property mogul or just stepping into the commercial property realm, understanding the importance of the EPC is a step in the right direction towards a greener, more profitable future.