Green for Rent,
Not for Sale
In our latest white paper, we present research on the impact of energy efficiency retrofit measures on rental returns and sale prices.
Property surveyors and valuation professionals are taught the link between income, yield and value of real estate assets. However, in the case of UK commercial real estate, energy efficiency is rewarded in rents, but not yet in sale prices.
We highlight the opportunities brought
about from this gap.
The green premium is real, but highly selective. Most assets face brown discounts without a matching sales uplift, creating a mispricing between operational performance and capital value. Leases already reward efficiency; sales markets lag.
The investor playbook is clear: acquire mispriced efficient assets and retrofit-lease-prove-sell the rest. As standards tighten and disclosure improves, the lease–sale gap should compress, and those positioned early will capture the upside.
Efficiency is still the last untapped yield play in real estate. The question isn’t if markets price it in, it’s who gets there first.
“Lease data show that prime London offices achieve higher rents for each upward step in EPC rating and enjoy lower vacancy for top-rated assets. On the other hand, transaction data reveal no consistent sales premium. Efficient buildings often trade at flat or even slightly discounted prices.
Our prediction is that sales prices will catch up.”
Nick Taylor, CEO
As seen in:
Our key findings
In this paper, we reveal that there is a huge market opportunity for both core and value-add strategies, targeting energy efficiency improvements. This is an arbitrage opportunity that can’t be captured with a spreadsheet alone. It hinges on asset-by-asset analysis of a building’s physics, financial performance, and potential. A specialist partner like Building Atlas can help you find the golden needles in the property haystack.
Building Atlas can help.
Starting with just addresses, our AI platform offers instant portfolio intelligence to enable you to future-proof and protect value in your portfolio.
With our end-to-end service, you can:
Map and model your entire portfolio in one click
Identify MEES and climate resilience risks
Pinpoint high-priority buildings for intervention
Model 2030-2050 impact scenarios
Estimate costs and payback periods
Connect to trusted installer partners