Badly built offices 'cost millions in wasted energy'

According to recent reports, increasing energy costs in the UK are driving many firms out of business. The new study by architects Gensler revealed that close to a third (27%) of companies' property-related energy

consumption could be saved by making offices more "sustainable".

Around three-quarters (72%) of companies' property directors believe that businesses are picking up the bill for badly designed, inefficient buildings. However, the majority of property developers (67%) will only go as far as legislation demands when it comes to energy efficiency.

Government plans to grade buildings with an energy performance certificate - in response to the EU's Energy Performance of Buildings Directive - could be "instrumental" in improving Britain's ailing office buildings, according to Gensler.

Chris Johnson, managing principal at the firm of architects, said: "The commercial offices which currently dominate our city skylines are costing business and the environment dear.

"With around 40% of energy consumption in the EU coming from the building sector, more sustainable and efficient design offers an enormous opportunity for reducing energy wastage, reducing carbon emissions and cutting costs."

Business case

According to the study, spiralling energy costs have pushed energy efficiency up the business agenda, with business aiming to reduce property energy consumption by 12% over the next 5 years.

On average, business is willing to pay 10% more in rent for efficiently designed and constructed buildings.

The study also revealed that businesses have the smallest influence on the design and build of their workplace. More than half believe that developers do not build with the end-user in mind, and despite the recent proliferation of flagship towers, 87% of businesses would prefer an efficient office to an iconic building.

Sir Digby Jones, former director general of the CBI, commented: "Sustainability has increasingly become part of the language of commercial property. Yet despite individual examples of good practice, energy use in the commercial sector has risen rapidly and too often the development industry perceives a lack of demand for energy efficient buildings.

"This needs to change. For the market to develop it is vital that investors, developers, business users and the government work together to make a compelling business case for sustainable buildings. Only then will they be built."

'Investment timebomb'

However, while businesses appear to welcome the planned grading of buildings, developers had a stark warning about the impact of such measures on commercial property investors.

Three-quarters (75%) of developers questioned for the study believed that poor energy efficiency would have a negative impact on the value and transferability of current commercial property assets when certification is imposed.

Chris Johnson, added: "Property fund managers are effectively sitting on an investment timebomb. The introduction of building certificates will shorten the lifespan of commercial buildings constructed before the new regulations, and we expect the capital value of inefficient buildings to fall as a result."

A full copy of Gensler's report - 'Faulty Towers: Is the British Office Sustainable?' can be requested via the company's website - see link above/right.