Our architectural heritage belongs to the absolute cream of the crop worldwide and includes canal houses, churches, castles and factories. These historical properties are not only residential but are also used as offices. The look and feel of historical properties create an attractive place to work. To ensure that the unique characteristics of these properties are protected, an exception to the C label obligation for offices has been included for historical properties. However, since so many properties are involved, a generic exception is undesirable. This affects the future-proof position of this part of the office stock.

Over three million square metres of office space under the radar

How many buildings are we talking about? Over 12% of offices do not need to comply with the mandatory energy label C. This concerns offices with a municipal, provincial or listed status with energy label D and lower. This means that no less than 3.2 million sq m of office space is exempted from this obligation. Two-thirds of these buildings are listed, one third are municipal monuments, and a handful are provincial monuments. In total this amounts to as many buildings as the combined office stock of Rotterdam, The Hague and Eindhoven.

Large cities remain behind in the energy transition

Especially in cities with historic centres, the exception means that the sustainability of the office stock lags behind. The share of monuments in Middelburg (34%), Haarlem (33%) and Maastricht (30%), for example, is especially high. But even in the larger cities of Amsterdam and Utrecht, one quarter up to almost one fifth of the offices, respectively, are exempted from the label C obligation. This heritage partly determines the appeal of these cities as places to work, live and take part in recreational activities. As such, it is all the more important that these properties can remain in sustainable use over the coming decades.

Scope for investments in appealing real estate

A complete exception of monuments for energy label C is too black and white, in my opinion. Specific measures are possible in many cases. Adaptation with an eye for the characteristics of these properties is key. Making monuments future-proof is not only necessary for the energy transition, but will also ensure lower heating costs and creating a healthy indoor climate. For offices in particular, the indoor climate is vital for healthier employees and higher productivity.

The higher rental price and strong demand for heritage sites justifies investments in sustainability. The achieved rents in monumental offices have been consistently higher than in the rest of the market for the last decades, which is partially due to location and partially due to look and feel. In 2022, the difference in annual rent per sq m even increased to €58 (nationally listed buildings) and €63 (municipal monuments) compared to standard offices. This price difference provides scope for investments by devolving the investments onto tenants by factoring it into the rent. The often excellent and central location of listed office buildings also guarantees future rentability, even at higher price levels. Good mobility and provisions are vital to the success of an office.

Pushing ahead with a focus on character

In the context of stricter (European and national) legislation and the considerable energy savings potential, far-reaching requirements for monuments are necessary. Generic requirements, however, are not suitable for this purpose. With national standards specifically aimed at monuments, this part of the office stock can be prepared for the future. In these standards a balance needs to be sought between improving energy performance and retaining monumental elements. In particular offices with a proven historical and cultural value, bolstered by their monument status, are worthy of sustainable retention for next generations.