Commercial landlords face MEES compliance crunch
Two-thirds of UK commercial real estate (CRE) owners admit they are “not fully compliant” with energy efficiency regulations, according to new research from smart buildings specialist LMG.
The study highlights the growing pressure on landlords to meet the UK government’s Minimum Energy Efficiency Standards (MEES) or risk fines and asset devaluation.
An estimated 80% of commercial London properties currently fall short of MEES requirements, leaving landlords facing a significant retrofit challenge. While the government recently extended the interim deadline for achieving at least an EPC rating of C from 2027 to 2028, the 2030 target of reaching an EPC rating of B remains unchanged. That means approximately 15 million square feet of office space needs upgrading every year to stay compliant.
Mike Hook, Executive Director at LMG, commented: “These looming MEES deadlines aren’t a distant concern — landlords need to act now. Even with the extended 2028 deadline for a C rating, the clock is still ticking toward the 2030 requirement of a B rating.
“Failing to act quickly will force landlords into costly, last-minute upgrades. We’ve seen that a rushed approach strains budgets — especially in today’s market — and causes major disruption to everyday operations. By planning ahead and investing in the right technology infrastructure, landlords can spread out their costs, minimise downtime and ultimately future-proof their portfolios.”
Although 100% of surveyed CRE owners say they’re aware of the rules, 20% admit they remain stuck in planning, with no tangible work underway. This gap between awareness and action could lead to inflated costs and difficulties securing financing or leases if properties remain below the required EPC thresholds.
LMG’s full research report, ‘Smart Moves: how landlords and tenants thrive in the evolving CRE market’, underscores the urgent need for property owners to transition from planning to implementation to secure compliance and avoid last-minute pitfalls.
