Significant action is needed to upgrade and improve Cardiff’s commercial office stock to achieve government net zero targets, according to new research from property consultancy JLL.
It concludes that 75% of the office stock in Cardiff is at risk of not meeting the UK Government’s target for all non-domestic properties to have an EPC (energy performance certificate) B rating by 2030. However, Cardiff is ahead of many other leading centres with the UK-figure standing at 90%. EPC legislation applies to Wales, England and Northern Ireland.
Cardiff has committed to achieving net zero status by 2030, with the council having set out its One Planet Strategy detailing how it plans to deliver a carbon neutral local authority. The UK and Welsh governments have a 2050 target of reaching net zero, but as part of its new agreement for government with Plaid Cymru the Welsh Government is exploring bringing that forward by 15 years.
As well as Cardiff the research analysed the commercial property markets of Thames Valley (85% not meeting target), Bristol (86%), Birmingham (88%), Manchester (85%), Leeds (83%), Glasgow (89%) and Edinburgh (95%).
With no completed office development across the eight centres assessed by JLL having yet achieved the UK Green Building Council’s (UKGBC) embodied and operational net zero carbon standard, the research also finds that just 8% of total existing office stock in Cardiff is BREEAM (sustainability assessment method) good to outstanding, compared to 16% UK wide. This shortfall is, however, expected to reduce significantly with the delivery of new development and refurbishment around the city centre. Outstanding BREAM buildings in Cardiff, including the BBC Wales building at Central Square.
As well as Cardiff the research analysed the commercial property markets of Thames Valley, Bristol, Birmingham, Manchester, Leeds, Glasgow and Edinburgh. JLL estimates that the UK’s rate of repurposing commercial stock needs to hit 5% annually in order to help the country hit its 2050 carbon neutrality goal, which would be more than double the levels of redevelopment seen in the last decade.
Cardiff has one of the highest replacement rates out of the core regional office markets, currently standing at around 1.3%.
Cardiff’s newest office developments, such as John Street at Callaghan Square, Central Square and Central Quay are offering increased levels of sustainability.
The multi-million-pound redevelopment of Fusion Point One, completed earlier this year, included a new heating and cooling system to improve energy efficiency and environmental performance along with EV charge points, cycling provision and shower rooms.
JLL said building repurposing and refurbishments offer considerable sustainability benefits, exemplified to plans to turn the listed Brewhouse building on the site of the former Brains brewery into a new office development - as part of the wider Central Quay mixed-use scheme.
Justin Millett, lead director of the Cardiff office of JLL, said: “It is encouraging to see that investors and occupiers are increasingly prioritising sustainability targets. There is certainly strong and growing demand in the market for offices that combine high quality design and fit-out as well as excellent connectivity with minimal environmental impact. Recent and current projects such as Fusion Point One, John Street at Callaghan Square, Central Square and Central Quay are helping to meet that demand.
“However, as our report shows, there is still a long way to go to ensure regional cities, including Cardiff, meet their goals.”
