Potter Space has welcomed the recent update on Minimum Energy Efficiency Standards (MEES) as a positive step forward for the industrial and logistics market, particularly for the small to mid-box sector.
The business has been actively calling for greater clarity on MEES requirements since 2023, both through direct engagement with policymakers and through its BIG Things in SMALL Boxes research, which focuses on the challenges facing sub-100k sq ft space. This latest announcement suggests that those concerns are being heard, offering a clearer sense of direction for the years ahead.
Importantly, the update also recognises that not all space will be treated in the same way. Smaller units under 1,000 sq m will continue to be subject to the current minimum standard of EPC E, providing essential reassurance for a significant portion of the market, albeit landlords could seek a competitive advantage by improving those premises.
That said, there is still considerable work to do. The update has moved back the EPC B minimum target for properties over 1,000 sq m to 2031, from 2030. Potter Space’s research indicates that 79% of existing small to mid-box stock currently falls short of EPC B, underlining the scale of the challenge with only one extra year provided. Upgrading older buildings is rarely straightforward, often requiring specialist expertise and it will be a significant capital cost, something Government should consider how it can support.
Potter Space has previously set out a series of practical measures that could be considered as part of such a pathway, including targeted grants for heating upgrades, tax relief for improvement works, and incentives to support solar installation. Equally important is the provision of accessible guidance, toolkits and technical support to help navigate what can be a complex process.
Potter Space has consistently drawn attention to the importance of safeguarding small to mid-box supply. Units under 100k sq ft make up 95% of the I&L market and are essential to the UK’s SME economy. Ensuring that regulation does not restrict availability through unrealistic or unsupported timescales will be key to enabling growth, employment and regional activity.
With additional time now available, Potter Space believes there is a real opportunity to take a more considered approach, bringing together policy, funding and delivery frameworks to ensure the sector is in a strong position to meet future standards.