Commercial property retrofitting. What does “retrofit” mean, and how can we scale up action in the UK sector?
| Pages | 443-452 |
| Date | 01 July 2014 |
| DOI | https://doi.org/10.1108/JPIF-02-2014-0016 |
| Published date | 01 July 2014 |
| Author | Tim Dixon |
| Subject Matter | Property management & built environment,Real estate & property,Property valuation & finance |
PRACTICE BRIEFING
Commercial property retrofitting
What does “retrofit”mean, and how can we
scale up action in the UK sector?
Tim Dixon
School of Construction Management and Engineering,
University of Reading, Reading, UK
Abstract
Purpose – Progress in retrofitting the UK’s commercial properties continues to be slow and
fragmented. New research from the UK and USA suggests that radical changes are needed to drive
large-scale retrofitting, and that new and innovative models offinancing can create new oppo rtunities.
The purpose of this paper is to offer insights into the terminology of retrofit and the changes in UK
policy and practice that are needed to scale up activity in the sector.
Design/methodology/approach – The paper reviews and synthesises key published research into
commercial property retrofitting in the UK and USA and also draws on policy and practice from the
EU and Australia.
Findings – The paper provides a definition of “retrofit”, and compares and contrasts this with
“refurbishment” and “renovation” in an international context. The paper summarises key findings
from recent research and suggests that there are a number of policy and practice measures which need
to be implemented in the UK for commercial retrofitting to succeed at scale. These include improved
funding vehicles for retrofit; better transparency in actual energy performance; and consistency in
measurement, verification and assessment standards.
Practical implications – Policy and practice in the UK needs to change if large-scale commercial
property retrofit is to be rolled out successfully. This requires mandatory legislation underpinned by
incentives and penalties for non-compliance.
Originality/value – This paper synthesises recent research to provide a set of policy and practice
recommendations which draw on international experience, and can assist on implementation
in the UK.
Keywords Energy efficiency, Commercial property, Retrofit, Green Deal,
Energy performance contract, DECs, EPCs
Paper type General review
Introduction
Commercial property (which includes retail, offices and industrial space) plays a vital
role in the UK economy. With a total of 575million sq m of floor space, commercial
property is worth about £717 billion, with retail (at £227 billion) the largest sub-sec tor.
The sector is also diverse and complex, with more than half of commercial property
being rented (51 per cent) rather than owned, compared with only a third of housing being
rented (Property Industry Alliance (PIA), 2013).
However, the sector also has a substantial environmental impact. Commercial
property produces 10 per cent of the UK’s greenhouse gas emissions and consu mes
7 per cent of UK energy and there is an increasing concern that the rate of progress
in tacking energy inefficiency in existing commercial stock is too slow. This is
challenging, because it is estimated that by 2050 some 70 per cent of today’s buildings
will still be standing, with 40 per cent built prior to 1985 (Figure 1) (Committee on
Climate Change (CCC), 2013). The importance of existing stock is also highlighted
The current issue and full text archive of this journal is available at
www.emeraldinsight.com/1463-578X.htm
Journal of Property Investment &
Finance
Vol.32 No. 4, 2014
pp. 443-452
rEmeraldGroup Publishing Limited
1463-578X
DOI 10.1108/JPIF-02-2014-0016
443
Commercial
property
retrofitting
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