Dilapidations form part of the landlord and tenant battleground and can have significant cost implications. Sustainability now forms part of the weaponry available to either side.

Properties deteriorate over time, and dilapidations is the process which seeks to determine the allocation of responsibilities and resultant financial burden.

However, when dealing with dilapidations, landlords and their professional advisors also need to think beyond this process to ensure a building has the best possible chance of securing a new tenant once the existing occupiers vacate.

This is particularly the case for prime buildings where the expectation is to attract companies with strong covenants.

Such companies are increasingly likely to be subject to legislation around greenhouse gas reporting, have minimum performance requirements around energy and carbon, such as so-called minimum energy efficiency standards, and have in place Corporate Social Responsibility (CSR) policies- all of which will influence the type of buildings they choose to occupy. Therefore, it may be necessary to improve a building to secure a new occupier and this could interfere with the dilapidations process.

EVORA is able to support with the preparation of terminal schedules of dilapidations to ensure that the effect of energy efficiency policy and wider market drivers for sustainable property are properly understood and accounted for.

EVORA is an independent sustainability consultancy that specialises in commercial real estate. Our engineers have an in-depth market knowledge of building services and regulatory drivers such as Minimum Energy Efficiency Standards.

“I have worked with EVORA for almost five years now, having initially appointed them following a review of providers. I firmly believe that EVORA are leaders in their field and they have opened my eyes to the value that a proactive approach to sustainability can bring.”

Rob HallManaging Director, EPIC Property Asset Management


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