A combination of environmental regulations and falling office attendance means commercial property is struggling and the Spring Statement was a missed opportunity to turn it around, says Dan Drogman

The UK’s commercial property sector is being strangled from all angles, and this year’s Spring Statement was a missed opportunity to relieve that pressure.

Let’s start with the ever-changing landscape that we in the industry face.

Firstly, there are the energy upgrades. With a looming interim 2027 deadline for landlords to upgrade their buildings to meet higher energy standards, the cost of retrofitting remains a major barrier. Over three quarters of London’s office buildings are currently below the minimum legislative standard of EPC C, and will need to be upgraded by 2030 to meet EPC B. That means that an equivalent of 15m sq ft per annum will need upgrading, at an extortionate cost. But retrofitting is good for business. It helps to attract and retain tenants, it avoids assets being stranded and it can future proof a building against future regulations.