REAL ESTATE ENVIRONMENTAL BENCHMARK UPDATE: 2017 … · 33 GWH ELEC-EQ LIKE-FOR-LIKE SAVING 3.8% REAL ESTATE ENVIRONMENTAL BENCHMARK UPDATE: 2017 ENERGY SNAPSHOT In 2017, BBP members

KEY FACTS COMPARED TO 2015

7M M2 OF FLOOR AREA +7.6%

587 PROPERTIES -5.8%

1,271 GWH ENERGY CONSUMPED -4.4%

£120M ENERGY SPEND -6%

XX PORTFOLIO CHURN X%

33 GWH ELEC-EQ LIKE-FOR-LIKE SAVING

3.8%

REAL ESTATE ENVIRONMENTAL BENCHMARK UPDATE: 2017 ENERGY SNAPSHOT

In 2017, BBP members submitted data on 683 properties, covering over 7.1 million m2 of UK commercial real estate. This report provides a snapshot of some of the key facts and performance trends over time.

FEBRUARY 2018

2 | Real Estate Environmental Benchmark Update: 2017 Snapshot

Introduction

Each year BBP members submit data on their managed UK commercial real estate portfolios into the Real Estate Environmental Benchmark (REEB). With no other initiative operating at such a scale, it provides a valuable insight into the latest energy performance of commercial properties in the UK and its associated benchmarks are now increasingly being used by the wider industry.

Comparing your own properties

A major output of the REEB project is to produce operational energy benchmarks for the wider industry. These enable other organisations to compare their own properties with the benchmarks. Check-out the 2017 REEB Benchmarks and compare your properties here.

KEY FACTS COMPARED TO 2015

7M M2 OF FLOOR AREA +7.6%

587 PROPERTIES -5.8%

1,271 GWH ENERGY CONSUMPED -4.4%

£120M ENERGY SPEND -6%

XX PORTFOLIO CHURN X%

33 GWH ELEC-EQ LIKE-FOR-LIKE SAVING

3.8%

2017 REAL ESTATE ENVIRONMENTAL BENCHMARKS

JANUARY 2018

This report provides a summary of the 2016/17 results and a retrospective assessment of how BBP members’ portfolios have performed over the past 5 years. The key highlights include:

• Data coverage – there has been a 122% increase in the floor area submitted over the past 5 years, showing that the REEB data set is consistently growing.

• Data quality – significant improvements to data quality checks have provided much greater data integrity, demonstrated by the consistent decrease in the number of properties being excluded from analysis.

• Performance improvements – since 2010/11 energy intensity has improved at an average rate of 3.9% each year totalling 18% over that period. However, the data suggests a slowing of the rate of improvement, with energy intensity improving by only 1% in the past year..

KEY FACTS

7.1M M2 OF FLOOR AREA

+25%COMPARED TO 2016

683 PROPERTIES

+30% COMPARED TO 2016

1,238 GWH ENERGY CONSUMPTION


£130M ENERGY SPEND


235NEW PROPERTIES


948 GWH LIKE-FOR-LIKE ENERGY CONSUMPTION

-0.4%COMPARED TO 2016

http://www.betterbuildingspartnership.co.uk/2017-real-estate-environmental-benchmarks


Chart 1 shows the contribution of individual members to the REEB data set. The upper row indicates the proportion of properties by floor area, submitted by each member, whilst the lower

Chart 1. Data Set Breakdown by BBP Member

The 2017 Data Set

Share of floor area

Land

Sec

uriti

esLa

nd S

ecur

ities

Intu

Intu

Lega

l & G

ener

al

Lega

l & G

ener

al

Aviv

a In

vest

ors

Aviv

a In

vest

ors

LaSa

lle IM

LaSa

lle IM

Gre

at P

ortla

nd E

stat

es

Gre

at P

ortla

nd E

stat

es

Tran

spor

t for

Lon

don

Tran

spor

t for

Lon

don

Aber

deen

Aber

deen

DAW

M

DAW

M

Brun

twoo

dBr

untw

ood

Capi

tal &

Reg

iona

lCa

pita

l & R

egio

nal

13%

14 %

7%

7%

10%

6%

3%

5%

3%

4%

2%

4%

2%

3%

5%

3%

1%

2%

1%

2%

1%

1%

Briti

sh L

and

Briti

sh L

and

Cana

ry W

harf

Cana

ry W

harf

M&

G Re

al E

stat

e

M&

G Re

al E

stat

e

Her

mes

Rea

l Est

ate

Her

mes

Rea

l Est

ate

Ham

mer

son

Ham

mer

son

Schr

oder

Rea

l Est

ate

Schr

oder

Rea

l Est

ate

TH R

eal E

stat

eTH

Rea

l Est

ate

The

Crow

n Es

tate

The

Crow

n Es

tate

Wor

kspa

ceW

orks

pace

Blac

ksto

neBl

acks

tone

14%

14%

2%

7%

7%

6%

3%

4%

8%

4%

9%

3%

4%

3%

2%

3%

2%

2%

1%

1%

Share of energy consumption

IN 2017, 26 BBP MEMBERS SUBMITTED THEIR MANAGED PORTFOLIOS INTO THE REAL ESTATE

ENVIRONMENTAL BENCHMARK

Low Carbon Workplace 0.2%

Low Carbon Workplace 0.3%

Grosvenor 0.2%

Grosvenor 0.4%

Cadogan 0.1%

Cadogan 0.1%

Shaftesbury 0.02%

Shaftesbury 0.01%

CLS Holdings 0.6%

CLS Holdings 0.9%

row highlights the proportion of the total energy consumption those properties represent. Energy consumption of the properties will naturally vary due to type, size and use.


A, B, C D E F G No EPC

Chart 2 and 3 show the size of the REEB data in terms of number of properties and floor area over time. The REEB data set has steadily grown every year, both in terms of number of members submitting data as well as the size of the data set.

In 2017, the floor area of properties in the REEB data set increased by 25% and the total number of properties

Chart 2. REEB Property Profile

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

3.2

4.0

4.95.0

5.7

7.1

Offices OfficesRetail / leisure parks

Retail / leisure parks

Unenclosed shopping centres


Enclosed shopping centres


800

700

600

500

400

300

200

100

0

8m

7m

6m

5m

4m

3m

2m

1m

0Num

ber o

f pro

pert

ies

Floo

r are

a (m

2 in M

illio

ns)

Floor area (m2)

Chart 3. 2016/17 Floor Area

42%

21%

7%

30%

increased by 30%. There was also significant portfolio churn with 32% of the properties for 2016/17 being new entries. The new properties represent a combination of new BBP members submitting data for the first time as well as newly purchased and/or refurbished properties entering the data set. Properties that left the data set are either being refurbished or have been sold.

THE REEB DATA SET IS GROWING; IN THE PAST YEAR THE TOTAL NUMBER OF PROPERTIES HAS INCREASED BY 30% AND THE FLOOR AREA HAS INCREASED BY 25%

186

48

32

8

217

63

39

11

307

79

44

8

291

77

47

24

361

73

41

52

421

84

43

135


Trends Over Time

Chart 4 shows the combined indexed energy intensity of BBP Members’ office and retail portfolios as it stood each year. Starting at a baseline of 100, it tracks how the energy intensity of annually submitted properties changes over time, in relation to the baseline year. An indexing approach is used as it allows multiple property types to be combined together into one simple performance metric. Results show that the energy efficiency of properties submitted into REEB have steadily improved over time, with 1% improvement in the last year and 18% improvement over the last 6 years.

Chart 4. Indexed Energy Intensity Trend

100

95

90

85

80Inde

xed

ener

gy in

tens

ity

100

8283

85858689

BBP Members’ energy intensity index (2010/11 = 100)

BBP MEMBERS ARE DEMONSTRATING CONTINUOUS IMPROVEMENTS IN ENERGY

EFFECIENCY. OVER THE LAST 6 YEARS ENERGY INTENSITY HAS REDUCED AT AN

AVERAGE RATE OF 3.9% PER YEAR

CHANGES SINCE 2012

+122%

+73%

+149%

98 GWH

£10M

3.4%

M2 OF FLOOR AREA

PARTICIPANTS

PROPERTIES

ENERGY SAVED

ENERGY SAVINGS

ANNUALISED LIKE-FOR-LIKE REDUCTION

2010/11238 properties








Chart 6 shows the performance of like-for-like properties over time. Each line represents a consistent set of properties starting at a different base year. Figures on the right show the annualised rates of reduction per year, while those over the lines show the overall reduction for the corresponding period.

Each consistent set of properties have made like-for-like energy reductions demonstrating the action

Chart 6. Like-for-Like Energy Savings Over Time

Chart 5 reports the change in absolute energy consumption of the 453 properties that remained consistent over the past two reporting years. The change in like-for-like energy consumption is broken down by property type.

For these 453 properties, the overall energy consumption reduced by 0.4% last year. While

like-for-like consumption for offices increased by 0.6%, enclosed shopping centres achieved -1.4% reduction and retail and leisure parks achieved an impressive -21.9% reduction. Such savings are accomplished by a combination of energy conservation measures through refurbishment and upgrades, and engaging with occupiers to reduce energy consumption through better management.

Chart 5. Like-for-Like Energy Savings

2015/16 453 properties 2016/17

% change Annualised change

Ener

gy (G

Wh

elec

-eq)

Inde

xmembers have been undertaking to drive energy reductions across their portfolio. The properties that have been within the REEB data set the longest have also achieved the greatest like-for-like savings. Of the 99 properties that have remained consistent within the data set since 2011/12, there has been a 16% reduction in energy consumption, equating to an annualised reduction rate of 3.4%.

Offices Retail / leisure parks



1000

900

800

700

600

500

400

300

200

100

0

105

100

95

90

85

80

75

741

177

1911

736

180

2411

-1.4%

-21.9%-1.3%

-0.4%

-2.8%

-3.9%

-4.0%-3.4%

+0.6%

2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Lfl–2yr Lfl–3yr Lfl–4yr Lfl–5yr Lfl–6yr

-0.4% 453 properties

-6% 270 properties

-11% 211 properties -15%

146 properties

-16% 99 properties


Chart 7 shows the energy cost savings made by members over time for their like-for-like properties submitted into REEB. Each bar represents the savings made between consistent sets of buildings over two consecutive years. In 2016/17, an overall £0.31m savings were made across 453 properties.

Chart 7. Like-for-Like Energy Cost Savings

-£0.04

£2.76

£3.04

£3.92

£0.31 £0.31

Chart 8 shows the total unadjusted energy consumption of the REEB data set in GWh over time, broken down by individual fuel type. The other fuels here represent the consumption linked to the use of district heating, biofuels, LPG, wood pellets etc.

Chart 8. Absolute Energy Consumption

2011/12(274 properties)






Electricity (GWh) Gas (GWh) Other fuels

These savings represent reduction in total utility costs due to a combination of energy efficiency measures and management practices.

The savings this year are much lower than 2015/16 as like-for-like energy reduced by only 0.4% in 2016/17, compared to a reduction of over 4% in 2015/16.

2012/13 2013/14 2014/15 2015/16 2016/17

4

3

3

1

0Like

-for-

Like

Sav

ings

(£ in

mill

ions

)

Ener

gy (G

Wh)

1600

1400

1200

1000

800

600

400

200

0

179

1

621

288

4

710

376

5

858

342

3

891

373

4

937

421

7

1066

Absolute energy consumption changes each year as a result of the number of properties within the data set and the floor area that they represent. This can be seen in the way the energy consumption in Chart 8 mirrors the increasing number of properties and floor area seen within Chart 2.


Comparing this report to previous years

Transparency and integrity are vital components of any data analysis. For each ‘snapshot’ report, efforts are made to ensure information is presented in a clear, concise and open manner. When comparing the results of this report to those previously published, readers will note that not all historic figures match. There are a number of reasons why this is the case:

• Some new properties that entered the data set in 2016/17 provided multiple years’ worth of data, impacting historical performance.

• Between each year’s data collection, efforts are made with members to go back and update historic data and correct any erroneous submissions.

• New data quality checks were implemented this year which have been retrospectively applied to historic data, resulting in an increased number of property exclusions (see graph to right).

• Energy intensity is no longer adjusted for the number of property operating hours. This decision was based on a study undertaken by BBP that showed no co-relation between operating hours and energy performance.

Further details on how calculations are made is provided within the Methodology notes on page 9.

2010/11 2011/12 2012/13 2013/14 2014/15 2015/16 2016/17

Included Total submitted floor area (m2)

Excluded due to data quality issues

Area of properties included in analysis (m2)

900

800

700

600

500

400

300

200

100

0

12

10

8

6

4

2

0 Floo

r are

a (m

2 in M

illio

ns)

265

3.1

274

3.2330

4.0

438

4.9

439

5.0

527

5.7

683

7.1

176

4.6

223

4.9

215

6.0

290

7.5

211

7.4

163

7.9

130

9.9

Chart 9. Property Exclusions from REEB Data set

Num

ber o

f pro

pert

ies

40% excluded(2011/12)

16% excluded(2016/17)Percentage change in number of properties being excluded


The Data Set

In 2016/17, data for 813 properties was submitted by BBP members, however only 683 met the necessary data quality criteria to be included within the analysis. The criteria for excluding properties are:

– Properties with missing data that are vital to the analysis.

– Properties that show abnormal changes between years or data anomalies that cannot be explained or confirmed by the submitting participant.

– Properties with energy intensities below the following thresholds:

– Non-air-conditioned offices: 30 kWhelec-eq/ m2/ yr,

– Air-conditioned offices: 50 kWhelec-eq/ m2/ yr,

– Enclosed shopping centres: 30 kWhelec-eq/ m2/ yr.

Separable Energy Uses

Certain office assets may exhibit abnormally high energy consumption due to the presence of large energy consuming functions/spaces such as data communication rooms and dealing floors.

To accommodate these assets and allow for them to be comparable with standard offices in the data set, the annual metered consumption is reduced where validated metered energy consumption for one or more of the allowed separable energy uses is provided.

Methodology Notes

Electricity Equivalent (ele-eq) KPI

In Charts 1, 4, 5 and 6, energy is represented as electricity equivalent. Electricity ‘equivalence’ is calculated to reflect the approximate thermodynamic differences between electricity, fuels and heat. The ratio for fuels is the same as the ratio of Climate Change Levy rates for gas and electricity from 01 April 2019.

The kWh of electricity equivalent metric can be applied temporally and geographically, thereby facilitating historical and international comparisons of energy efficiency. The conversion factors used for kWhelec-eq are: Electricity = 1, fuels = 0.4 and thermals = 0.5

Energy Costs

Energy savings calculations are based on the following tariff rates:

2015/2016 onwardsGas: 3p/ kWh Electricity: 11p/ kWh

2010/2011 to 2014/2015 Gas: 3p/ kWh Electricity: 10p/ kWh

Calculating Indexed Intensity Trends (Chart 4)

An indexing approach is used to enable property owners to assess performance for continuously changing portfolios over time. By taking the average energy intensity of the portfolio

from a baseline year of 2010/11 and selecting a starting value, in this case 100, the percentage change in energy efficiency can be tracked over time. This can illustrate, regardless of portfolio churn, comparable energy efficiency performance across whole portfolios.

In calculating the energy intensity, the following normalisations and adjustments are applied:

Appropriate floor areas to calculate energy intensity: The following floor areas are used for the energy intensity calculations.

– Offices: Net Lettable Area (NLA)

– Shopping centres: Common Parts Area (CPA)

– Retail/ Leisure Parks: No. of car parks Car Park spaces are then converted into area by

multiplying it to 25m2 (based on BCSC Guidance Note 76 – Construction Costs of Shopping Centre Car Parks)

Whole building data and vacancy rates: Only offices where whole building energy performance data is provided and occupancy rates are at least 75% are included when calculating energy intensity performance.

Weather adjustment: Weather-driven consumption has been taken into account by adjusting natural gas consumption to the UK 20 year degree-day average. It is assumed that 10% of natural gas consumption is for hot water, which is not significantly affected by weather, and is thus not adjusted using degree-days.

REEB 2017 Participants

Better Buildings Partnership1 Fore Street, London, EC2Y 9DT

info@betterbuildingspartnership.co.ukwww.betterbuildingspartnership.co.uk

Acknowledgements

This report has been developed through the work of the BBP Sustainability Benchmarking Working Group. Data collection and analysis has been undertaken by EnergyDeck.

Documents

REAL ESTATE ENVIRONMENTAL BENCHMARK UPDATE: 2017 … · 33 GWH ELEC-EQ LIKE-FOR-LIKE SAVING 3.8% REAL ESTATE ENVIRONMENTAL BENCHMARK UPDATE: 2017 ENERGY SNAPSHOT In 2017, BBP members