The Most Common Question we are asked, especially by our Business & Corporate clients is; Energy Efficient Vs Energy Inefficient Properties: What is the long term cost to my business in England?
It’s one of the questions we get asked the most lately; ‘Energy Efficient Vs Energy Inefficient Properties: What is the long term cost to my business in England?’
Considering the long-term impact on business costs, the difference between energy-efficient and energy-inefficient properties is substantial. In England, energy-inefficient properties can result in significantly higher operational expenses, maintenance costs, and environmental levies.
1. Long Term Leases & Potential Regulatory Penalties
With the new laws passed all new buildings should be zero-emission as of 2030; new buildings occupied or owned by public authorities should be zero-emission as of 2028.
As business you must start to factor in potential regulatory penalties, ahead of signing a long term lease on a building.
2. Energy-inefficient properties known as Secondary Properties
With the current slump in office demand and the work from home culture, we are seeing many secondary properties available and usused an many more to come.
Secondary properties refer to buildings that have outdated infrastructure and energy systems, leading to high energy consumption and inefficiency. These properties often lack modern energy-saving technologies and practices, resulting in increased operating costs and environmental impact.
3. Buy Old or Rent New? What is the cost to my business? The Big Unknown!
Buy Old – When considering whether to buy secondary properties or rent a shiny new property long term, there are several factors to consider, including potential value and cost implications for your business.
One potential value in buying secondary properties is the opportunity for long-term appreciation and potential financial gain. As the real estate market evolves, secondary properties in desirable locations have the potential to increase in value over time, building equity and serving as valuable assets for your business.
With the advancements in AI-powered analytics and smart building solutions, there is an opportunity to ‘retrofit’ and transform these energy-inefficient properties into sustainable, cost-effective assets. By leveraging AI algorithms and automation, building owners and managers can identify inefficiencies, optimize systems, and reduce energy waste.
Additionally, buying a secondary property can provide your business with stability and control over your premises. With a purchased property, you have the flexibility to modify and customize the space to meet your specific business needs, creating a more tailored and efficient working environment.
By implementing predictive maintenance strategies and integrating renewable energy sources intelligently, secondary properties can be upgraded to meet modern energy efficiency standards. This not only leads to significant cost savings but also contributes to a greener and more sustainable future.
Rent New – On the other hand, renting a shiny new property long term may offer flexibility and lower upfront costs. With a rental property, you are not responsible for property maintenance and repairs, as these are typically handled by the landlord BUT (a big BUT!) expect these to be factored into your ‘service charges’ and these go up over time – especially with inflation fluctuations. Oh and don’t forget yoru Business Rates on top of your rent. Alos, the trade-off is that you may not have control over the space or the ability to make customisations to suit your business’s unique needs as and when you want. Depending on what is in the leasehold agreement and what the landlord allows in their do’s and dont’s.
It’s essential to carefully evaluate these factors to make an informed decision that aligns with your business’s needs and objectives. Your property broker at Stonelink International will be able to guide you.
4. Retrofit Secondary Properties – Use AI technology!
With advancements in AI-powered analytics and smart building solutions, retrofitting secondary properties has become more efficient and effective. These technologies enable property brokers to assess the energy consumption patterns of potential properties and determine their energy efficiency level.
Property brokers’ such as Stonelink International and it’s building and constraction team are equipped with AI-powered analytics, can identify inefficiencies in building systems and operations. By optimising these systems, businesses can enhance energy efficiency and reduce energy waste. Additionally, predictive maintenance strategies can be implemented to proactively address potential issues and minimise downtime.
By unlocking sustainable savings with AI, businesses can transform secondary properties into energy-efficient assets. This not only benefits the bottom line but also contributes to a greener and more sustainable future for England.
5. Achieve Your Goal. Unlock the Power of Our Extensive Network & Resources!
At Stonelink International, we pride ourselves on our wide network and valuable resources that can transform your real estate journey into a truly exceptional experience. Our dedicated team of top-tier real estate brokers has cultivated an impressive and trusted network that extends far and wide, benefitting both our firm and our esteemed clients.
Whether you’re seeking to extract value from secondary properties that are currently overlooked or dive right into a shiny new building with no time to waste, our property brokers at Stonelink International are here to guide you every step of the way.
But it doesn’t stop there. With a handpicked team of experts, including building and construction professionals, AI tech gurus, and access to valuable resources, we provide comprehensive support to a diverse clientele. From investors and landlords to business owners, funds, venture capitalists, and family offices, our extensive network and resources are at your disposal.
Start a conversation now with Stonelink International, about the next steps in your journey.
Call direct on: + 44 (0) 207 993 4081 or contact us for a fast response.
