Rising energy costs around the globe will see a quick shift to retrofitting office buildings as companies move forward on the journey to decarbonisation. It is estimated that in developed cities, at least 90 percent of the office buildings are over ten years old, and 80 percent that exist today and will still be in use in 2050. Future-proofing buildings will ensure they can stay sustainable and fit for purpose, as the construction industry makes up 11 percent of global carbon emissions.
It is predicted that climate risk assessments will become part of all property valuations in the near future. At the same time, taxes on carbon emissions are already in place in countries such as Canada, Singapore, and New York City.
In order to align with the Paris Climate Agreement, retrofitting rates need to triple to at least three percent of stock per year. An estimated US$3 trillion is needed to meet the targets. Addressing the knowledge gap, scaling technology and upskilling the workforce will be critical to accelerating this pace.
Retrofits are complex and though-out operations. There are three types of retrofitting interventions. The deep retrofit of a whole building is where fundamental changes are made to the structure or service. A deep retrofit on MEP equipment is significant work on a building's mechanical, electrical and plumbing equipment. Finally, a light retrofit focuses on optimising, remodelling or replacing single elements within a building.
Retrofitting benefits building owners, investors and tenants as everyone works together to achieve wider sustainability goals, but it requires a shift in mindset. Buildings do not need to be new and shiny to be operational, reimaging existing spaces can still offer the same quality occupational experiences.
Some upgrade ideas can include solar roof panels, outdoor/green spaces, smart glass, censored lighting, cycle storage, geo-exchange system, building reuse and water harvesting.
Commercial real estate has a critical role to play in reducing global carbon emissions. While retrofitting is a complex challenge with no singular strategy, it is key to providing a sustainable future.
