UK commercial real estate to miss 2030 efficiency deadline by a decade, report says

Facilities managers and energy professionals face a growing challenge as new data reveals the UK’s commercial property sector is unlikely to meet key energy efficiency standards by 2030 — and may fall short by a full decade.

According to research from property data and tech firm Search Acumen, rented commercial buildings are now expected to meet the Minimum Energy Efficiency Standards (MEES) — requiring an EPC rating of B or above — by 2040. This is two years later than predicted just last year, suggesting that progress across the built environment is slowing.

The findings point to a 20% year-on-year drop in upgrades to the top EPC bands (A*-B) in 2024. Meanwhile, more than 13,000 commercial rental properties in England and Wales are still rated F or G — well below the legal minimum of E introduced in April 2023.

Office sector lags behind most with MEES

The office sector is falling furthest behind. Nearly 5,800 office buildings are still rated F or G — almost 5% of the total stock. Just 15% of offices have reached a B rating or higher, highlighting the scale of retrofit needed to meet MEES and wider net zero goals.

In contrast, retail has the lowest share of non-compliant buildings (0.5%), while hospitality leads in energy performance, with 31% of properties now achieving top EPC bands.

Search Acumen warns that unless the pace of energy upgrades improves, the commercial sector risks operational, financial, and reputational consequences. The data underlines the need for long-term planning, targeted investment, and better collaboration between landlords, occupiers, and facilities teams to bring buildings up to standard.

“Real estate owners and investors have faced a barrage of economic and financial challenges over recent years and inevitably this will have had some impact on the appetite for investment in costly retrofits,” says Andrew Lloyd, Managing Director at Search Acumen.

But, he says, decarbonisation needs to remain a top priority, “2030 really isn’t that far away.”