This Financial Times article, quoting analysis by Savills, is the latest reminder of the incoming green “tide” of regulation. The article makes a notable point, focussing on offices. With requirements set to shift upwards, the capex required to bring assets to standard may, in many cases, significantly outweigh the rent rolls involved.

Institutional landlords may be well-placed to fundraise for that very purpose - see this recent blog - and particularly with sustainability at the forefront of occupier demands, city centre rents may well underpin the outlay. Yet what about the bulk of the office market, with its plethora of landlords - not necessarily the well capitalised institutional players? It is a challenge on top of the changing workplace dynamic, with many tenants downsizing (or even switching entirely to flexible workspace - see this recent article on Currys' decision to exit their current headquarters). 

And whilst the article focuses on offices, what about the industrial market? Surely the green tide is also set to hit much of the stock in this sector?