Navigating the Evolving Landscape of Energy Efficiency Regulations in Real Estate

Season 2, Episode 3 – with Edward Glass, Senior Associate at Forsters LLC Welcome to a fascinating conversation with Edward Glass, from Forsters, as we dive into minimum energy efficiency standards, energy performance certificates, green lease clauses and data sharing between tenants and landlords. Edward Glass: Edward Glass is a Senior Associate in Forsters Commercial Real Estate team. He has experience in a broad range of commercial property work, including acquisitions/ disposals, development projects, real estate finance and leasing. He also assists with the real estate aspects of corporate transactions. Edward is particularly interested in trends impacting the real estate sector, including developments in sustainability and the impact of technological innovation. He has published a number of articles in Estates Gazette. He is also on the advisory panel for a charity working within the sharing economy to make otherwise empty commercial property available for community use. Forsters LLP: The Forsters Real Estate Team stands as a prominent force in the real estate sector, boasting one of the largest dedicated practices. Renowned for its high-quality and seamless services, it adeptly handles complex issues and maintains close ties with clients through every stage of an asset's life-cycle. Real estate, in all of its various forms, sits at the heart of the Forsters business – it is the sector on which the firm was founded. With over 120 lawyers specialising solely in real estate, they are well positioned to guide their clients through every situation whether it be an acquisition, disposal, development or property dispute.  Their clientele is diverse and prestigious, encompassing institutional investors, private and publicly listed property companies, funders, developers, and a range of occupiers, including rural and urban estates, charities, high net worth individuals, and landowners. Notable clients include BA Pension Fund (via BlackRock), Knight Dragon Developments Limited, LaSalle Investment Management, and The Crown Estate, to name a few. Episode summary: Listen in as we uncover the intricacies of global real estate decisions impacted by changing regulations with Edward Glass. We explore critical topics such as minimum energy efficiency standards, energy performance certificates, and the rise of green lease clauses. Edward has been tracking the E in ESG closely since 2013-14, and his expertise shines as he discusses the change in the industry that EPC regulations have instigated and how Forsters is dedicated to sustainability. We venture further into the financial implications of current and future regulations on real estate investments, emphasising the potential costs and risks for asset owners. We tackle the important question of how landlords should approach energy performance certificates, particularly with the looming necessity of capital expenditure to upgrade buildings to comply with future regulations. Listen in as we analyse the proposed uplift in minimum energy standards, its potential impact on the UK real estate, and strategies for budgeting for OPEX costs. The episode concludes with an insightful look into the changing landscape of green lease clauses, data sharing, and its enforceability. Edward shares his observations on the evolving narrative for both landlords and tenants and key considerations when drafting leases. We discuss innovative approaches like the Chancery Lane Project, the challenges of enforcing sustainability clauses in the commercial sector, and the importance of a strong landlord-tenant relationship in the residential sector. So, tune in and equip yourself with knowledge about the changing regulations in real estate, whether you are a landlord, tenant, or investor. Energy Efficiency Standards and Green Lease Implications of Energy Performance Certificates Changing Green Lease Clauses Landscape Green Lease Clauses and Data Sharing