Approximately 128m sq ft of UK warehouse space, 18% of all units above 50,000 sq ft, will fail to meet minimum EPC requirements by 2027 and risk becoming unlettable, according to Knight Frank., which adds that this number triples to 404m sq ft, or 60% of warehouse space, when considering the minimum EPC B requirement by 2030.

The prevalence of older, underperforming stock and its potential for obsolescence could further exacerbate the ongoing undersupply of logistics space, with development activity slowing and large multinational occupiers increasingly seeking more modern, energy-efficient facilities enabling them to meet ESG goals, reduce operational costs and embed technological solutions. 

In Wales, just 24% of warehouses over 50,000 sq ft meet the EPC B grade minimum, with marginally higher rates in the North East (33%), North West (39%), and Yorkshire and The Humber (40%). This highlights the need to address the ageing warehouse stock in these areas. However, based on the current rate of retrofitting, the North East and the East of England regions have the potential to achieve a minimum EPC B grade before 2030. 

BREEAM certification is becoming a key consideration for developers and logistics firms. Over the last decade, the number of BREEAM-rated industrial buildings has been consistently growing, with 1,411 buildings being certified and the majority (62%) receiving a 'Very Good' rating.