But experts say new net zero rules intended to boost the eco-credentials of office blocks, and the continued trend of working from home, means the outlook is bleak.
“Valuations have been hugely affected by the uncertainty of future office demand and ESG considerations,” Greenshields says.
New rules came into force in April requiring all office buildings to have an energy efficiency rating of at least E in order to be let out. The minimum threshold will ratchet up quickly over time, which will require many owners to sink more money into upgrades.
That which doesn’t – or can’t – meet the new standards removes from the market, that then right sizes the remaining supply to demand.
Maybe – and it’s a crazy way to do it too, but it could happen….
Rather like unemployment and a declining economy. If GDP falls then, in theory, all could take a small paycut. Or some could take a 100% pay cut by being unemployed. All office space could decline in value, or some to zero……
Greenshields says… putting his stamp on the post.
It’s been a brutal year for commercial property – but 2024 may be even worse
Thanks, Conservatives!
You might think they’ll take their shoe off your face in 2024, but actually they’re just going to fuck you with Net Zero until you revolt:
You may think 2024 will bring some relief. Interest rates in Britain are forecast to fall to 4pc by the end of the year, easing downward pressure on prices.
But experts say new net zero rules intended to boost the eco-credentials of office blocks, and the continued trend of working from home, means the outlook is bleak.
“Valuations have been hugely affected by the uncertainty of future office demand and ESG considerations,” Greenshields says
Why don’t we house these 120,000 homeless children in empty office blocks ?
Another possibility is that there is a video game genre called “Back Rooms” set in endless office blocks full of traps and monsters. There’s a business opportunity in taking a block and using it as a Back Rooms theme park. ( I saw a spoof where some wag had replaced a pursuing monster with Michael Jackson – terrifying ).
Years ago at a place I worked someone created a quake map based on our work site and building which a few of used to play on the network hours, when HR found out they were not amused
@Ottokring – “Why don’t we house these 120,000 homeless children in empty office blocks ?”
Because most office blocks have big open floors unsuitable for residential use (no privacy etc), and far too few showers and cooking facilites. They’d be quite expensive to convert – not worth it if you can build something much more suitable.
(no privacy etc),
Nonsense.
All solved with curtains and coffin-beds, children don’t need to wash regularly. A child under 16 probably only needs 8’x4′ to live.
Provide air fryers or microwaves or kettles for pot noodles.
Most umportant is a decent area in which to beat the children. Plenty of room to swing the slipper/cane/cricket bat.
Really Charles get with the real world !
I think there is an implicit assumption that someone, possibly someone *else*, will lend money to owners to convert. That comes from the idea that lenders like us need to have a proportion of lending marked as ‘eco’, ‘ESG’ or ‘Green’ so we have to lend against the eco-zealotry.
And we wonder why UK productivity is static. It isn’t. Base productivity goes up, and eco and regulatory burden pushes it right back down.
Always, whenever Net Zero is mentioned, it needs to be pointed out that it is the solution to a non existent problem. I don’t think that this can be emphasised enough. Unless the climate catastrophe bollocks is put to bed pronto western civilisation is pretty much doomed.
I thought that office buildings were mainly concrete floors and partitions hanging on a skeleton made of iron girders. I would have expected that they would be relatively simple to rip out all the walls and put in a new layout. Since residential space in London is so expensive I would have thought it would be economically viable. I’m sure there will be more knowledgeable people here who can list all the reasons that I’m wrong.