85% of smaller industrial units could become obsolete by 2030

The industrial and logistics sector could see 85% of current stock under 100,000 sq ft become obsolete by 2030 if the government sticks to previously agreed EPC timelines, according to research conducted by Savills on behalf of business park developer and operator Potter Space. Potter Space has published Big Things in Small Boxes 2024, its third annual report looking specifically at the sub-100,000 sq ft industrial market. It warns that 85% of existing inventory is at risk of being unlettable should the government decide to maintain the previous environmental target of commercial properties requiring a minimum EPC rating of B by 2030. The Department for Energy Security and Net Zero is currently in the process of reviewing the regulations and timelines. According to the report, 95% of the industrial and logistics market operates in units smaller than 100,000 sq ft, employing 2.1m people. The report says the sub-100,000 sq ft industrial market offers more than 201m sq m of roof space, from which 11.6 TWh of electricity could be produced through the use of rooftop solar panels. However, Potter Space argues that retrofitting offers only a partial solution and is calling for the acceleration of space being made available and for planning reform in order to deliver more energy-efficient new units to the market. It is also calling for tax breaks and incentives to help developers deliver greener buildings. Image © EFAFLEX_Schnelllauftore/Pixabay