Rebuild or refit offices

The Savills Blog

Net zero offices: rebuild or retrofit?

The office of the future will be net zero, with smart design and efficient operations. But how do we get there?

Instinct tells us the demolition of sub-standard office stock to build new is not the answer. The great challenge for developers is whether to retrofit an office building or build a new one, but where retrofitting was once hampered by constrictions around cost and regulation, the good news is the opportunity to deliver viable retrofit options is becoming ever easier.

A sea change in policy and approach is strengthening the argument to retrofit. These include recognised efforts to promote low-construction carbon; planning influences such as the Circular Economy guidance of the London Plan, energy saving regulations such as MEES and NABERS UK, methods to monitor in-use energy, and the rapid development and uptake of renewable energy like heat pumps and photovoltaic (PV) panels.

By contrast, when building new, the benefits of efficient design and resulting lower operational costs can be outweighed with the embodied carbon of construction. Real estate is responsible for 39 per cent of carbon emissions – operational emissions account for 28 per cent with the remaining 11 per cent attributed to embodied carbon – that is, emissions associated with materials and construction processes throughout the whole building lifecycle.

A major refurbishment can reduce operational carbon emissions considerably by upgrading the fabric and providing equivalent building services to newly built standards. At the same time it can cut embodied carbon emissions by half or even more – more than 50 per cent of embodied carbon emissions of a new build are associated with elements such as the sub structure, upper floors, roof and frame, that should be retained at a major refurbishment.

Recognising the impact and the potential that the property industry has to influence the reduction of carbon emissions, the best case scenario moving forward is in achieving a circular economy approach that explores all re-use options to tackle carbon before building new. Continuing to bring down the cost of retrofitting through new technologies and construction methods, and minimising tenants’ disruption is key in enabling the industry as a whole opts to retrofit over new build where possible.

The outcome will benefit not only our carbon output in the office sector, but it can also breathe new life into our towns and cities by investing in heritage buildings and restoring public realm that would otherwise be abandoned.

 

Further information

Contact Alexandros Chalkias

How can Local Authorities prioritise sustainability within their own estates?

 

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