Industry needs clear roadmap to enable it to hit new MEES target

The government’s update on Minimum Energy Efficiency Standards (MEES) is a welcome step forward and provides some much-needed clarity for the industrial and logistics sector – but it is long overdue. Having engaged with policymakers on this issue since 2023, alongside the findings and recommendations outlined in our ‘BIG Things in SMALL Boxes’ research, it is encouraging to see the challenges facing the small to mid-box market being acknowledged.

However, while the announcement is positive, it raises an equally important question: how do we get there?

The revised timeline effectively provides only one additional year for many property owners. Given the scale of the challenge, that remains an ambitious target. Without a clear roadmap setting out the steps required between now and 2031, there is a risk that uncertainty simply continues, leaving landlords and occupiers facing another cliff edge further down the line.

Our research highlights just how significant the task ahead is. Data from BIG Things in SMALL Boxes shows that 79% of existing small to mid-box industrial and logistics space does not currently meet an EPC B rating. Bringing such a large proportion of stock up to standard will require extensive retrofitting and investment across the sector.

That said, the direction of travel has been clear for some time and business owners should already be considering how they will improve the energy performance of their assets. However, recognising the need for change and being able to deliver it are two very different things.

For many owners of smaller industrial assets, the challenge is not simply one of financing retrofit works. Unlike larger institutional landlords, they often operate with leaner teams and more limited resources, meaning that specialist sustainability advice, detailed building assessments and ongoing asset management support represent additional costs that can be difficult to absorb for SMEs.

This is where government intervention can make a meaningful difference. The commitment to further guidance and stakeholder engagement from the government is encouraging and it’s a good opportunity for stakeholders like Potter Space to be able to work with the government to get this right – but businesses now need a clear roadmap and practical support to turn ambition into delivery.

The sector needs clarity on the support mechanisms that will be available. Targeted grants for heating upgrades, tax relief for EPC-improving works and incentives for solar installation could all play an important role in accelerating retrofit activity, as noted in our recent BIG Things in SMALL Boxes report. Equally important is the provision of accessible guidance, toolkits and technical support to help smaller owners navigate what can be a complex process.

The small to mid-box market accounts for 95% of industrial and logistics stock in the UK and plays a critical role in supporting SMEs, employment, innovation and regional economic growth. If these businesses are unable to access suitable space because buildings cannot be upgraded in time, the consequences will be felt far beyond the property sector.

The industry has demonstrated a clear willingness to invest in improving the quality and sustainability of its stock. What it needs now is certainty. If the sector does not receive further clarity for several years, we risk finding ourselves approaching 2031 with many of the same unanswered questions that exist today.

The government’s announcement should therefore be viewed as the start of the conversation, not the end of it. The additional time must be used wisely to develop a practical roadmap, establish meaningful support measures and provide the expertise that many smaller owners need to succeed.

This is an opportunity to get it right. Rather than kicking the can down the road, we should use this additional time to plan properly, put the right support in place and create a framework that actually enables delivery by 2031. With the right framework in place, the sector can make genuine progress towards higher environmental standards. Without it, the challenge of delivery will remain as daunting in four years’ time as it is today.