More than 19,000 commercial properties could now be unfit for occupation after tighter energy performance regulations came into force this week, data suggests.

Research from Search Acumen, based on government-held Energy Performance Certificate (EPC) data, suggests there are currently 19,166 commercial properties for lease in the UK with an EPC rating of F or G. These include offices, shops, hotels, libraries, museums, education and healthcare facilities.

This falls below the new minimum energy efficiency standard (MEES) of E, which is required of all commercial properties being leased by landlords as of 1 April 2023.

The minimum benchmark has been applicable to new leases granted since April 2018, but has now been extended to cover all commercial properties for lease.

The Search Acumen analysis found F and G EPC rated properties feature most commonly across offices (8,139 premises), retail (6,600) and storage and distribution (1,198 properties).

Westminster, Birmingham and Nottingham were revealed as the areas with the highest number of leased properties with F and G ratings.

Landlords are still awaiting news on plans to increase the MEES in the residential sector following a government consultation two years ago to raise the minimum EPC rating to C.

Search Acumen director Andy Somerville comments: “Tightening regulation around energy performance is an essential part of decarbonising our built environment however, inevitably, many commercial landlords will have been caught off guard. Many property owners will need to scramble to retrofit properties and, at a time when purse strings are tight, this may cause some issues.

“However, investment now in high levels of sustainability is essential for future proofing commercial portfolios and ensuring compliance with stricter regulation but also better meeting the needs of occupiers who are more focussed than ever on lowering their carbon footprint and their energy costs.”