BREEM & NET ZERO: For commercial buildings and future-proofing assets

Sustainable office building, London UK.

The South of England, renowned for high rise buildings, commercial drive and cramped square footage. Yet, despite its constraints, it is the one area that is continuing to develop despite the country’s capex uncertainty.

The Royal Institution of Chartered Surveyors (RICS) reported a particularly stagnant market across the UK commercial property sector in Q2 2025, with London being the one outlier.

And despite the work from home trend, office development is still taking up substantial investment with refurbishment, regeneration, and sustainably efficient spaces. Large, speculative projects, that were once dominating, are now taking a back seat. However, comparatively, the total volume of office space under construction in the UK is at its lowest since around 2015. Developers are cautious, often requiring pre-lets or anchor tenants before starting projects. Which, while the country is affected by economic pressures, labour shortages and a continuing shift in workplace demands, makes it difficult for tenants to feel secure and confident in letting spaces.

The companies that are investing in office space are demanding Grade A buildings: modern, sustainable, well-located, and rich in amenities. Not only are employees asking more from their workplaces, so are the organisations tenants.

But grade A buildings also tend to cost a lot more; interest rates, elevated build costs, and strict ESG compliance requirements have made new, large-scale commercial developments more difficult to fund.

This is accelerating the divide between prime and secondary stock.

The sustainability side

London authorities and investors are driving higher environmental benchmarks (BREEAM, net zero), meaning new commercial buildings must meet strict performance levels.

What is BREEAM?

The Building Research Establishment Environmental Assessment Method.

It is the UK’s leading sustainability assessment framework for buildings, measuring a project’s environmental, social, and economic sustainability performance across categories like energy use, water, materials, pollution, health & wellbeing, and land use.

Buildings can be certified on a scale from Pass → Good → Very Good → Excellent → Outstanding.

But more so than ever, occupiers and investors in London and the South-East are only interested in buildings rated Excellent or above. With sustainability being such an important movement, such ratings speak to both occupiers’ brands and investors reputations.

Many corporate tenants (especially finance, tech, and professional services firms) have their own ESG targets and will only lease BREEAM-rated space. Alongside, local planning authorities — particularly in London — now often require BREEAM ratings in planning consents.

For those construction and leasing these spaces, the higher the BREEAM rating, the hight the rental values (and lower vacancy rates).

For developers in London and Surrey, designing to BREEAM Excellent or Outstanding is no longer a “nice-to-have” — it’s becoming a minimum standard to attract occupiers and funding.

What is Net-Zero?

A net zero carbon building is one that either (a) generates as much renewable energy as it consumes, or (b) reduces energy demand drastically and offsets the remainder with verified carbon credits.

There are two key areas when it comes to carbon.

Operational Carbon – Energy consumed during use (heating, cooling, lighting, IT).

Embodied Carbon – Emissions from construction materials (steel, concrete, glass), transport, and the build process.

Why does this matter?

The UK Government’s 2050 Net Zero target and London’s Net Zero by 2030 strategy are pushing developers to deliver buildings with minimal carbon footprints. Meaning that major investors, pension funds, and occupiers won’t back assets that don’t meet net zero pathways — so non-compliant stock risks becoming “stranded assets” (obsolete and devalued).

In turn, what is being asked of construction firms, like Buckland building is the adoption of low-carbon materials and retrofitting.

Out with the old, in with the new….

There is the old adage, that you get what you pay for, and often times with a higher up front cost comes more value over the longer term, from machinery and shoes, all the way through to hair products and construction.

Meeting BREEAM and net zero adds upfront cost (better MEP systems, higher-quality materials, smart controls), but enhances long-term value. And, projects aligned with BREEAM and net zero targets are more likely to gain planning approval, especially in constrained areas like Surrey.

The future of office development in London and Surrey is being shaped as much by sustainability standards as by economics. Buildings that fail to meet BREEAM Excellent ratings or a clear net zero pathway risk being left behind, while those that do will command premium rents and investor interest. For construction firms, this shift represents both a challenge and an opportunity.