FFrom a former ice factory that became a shining home for offices and shops, to a Victorian bus factory that takes on new life as a flexible workspace, across the country buildings are being renovated and repurposed to the future.

This stands in stark contrast to what seemed to be the motto of the commercial real estate industry in recent years: tear it all down and start over.

For several decades, buildings such as office buildings were not designed or built with longevity in mind. When parts and equipment such as elevators and windows wear out, owners often opt for demolition rather than renovation.

But against the backdrop of the UK’s race to reach net zero by 2050, the climate crisis has forced all sectors of the economy to consider their emissions, prompting property owners and developers to re-examine the impact of construction.

While buildings have become much more energy efficient to operate, huge amounts of energy are required – and therefore large amounts of carbon – emitted in the manufacture of components as well as in construction. These emissions, which occur before a building is even in use, create what is known as “embodied carbon”.

“Twenty years ago, if you looked at the overall carbon impact of a building, then maybe 80% of that came from how you use it,” said Chris Cummings, director of Savills Earth. , the estate agent’s sustainability team.

“With a brand new glass and steel building in London, 95% to 98% of the building’s impact will be in the materials, as it will be lightweight and use green energy, and the network will decarbonise.”

The price offered to decarbonize the entire life cycle of a building is significant. The World Green Building Council calculates that construction, along with the energy needed to heat, cool and power buildings, accounts for nearly 40% of global greenhouse gas emissions.

Tenants are also increasingly demanding more efficient buildings, and their owners are trying to meet this demand by breathing new life into old structures.

Comprising two Victorian warehouses, a former bus factory in Islington, north London, known as Busworks, was bought for £45m last year by flexible office provider Workspace, which is transforming the building rich in history in modern offices.

“30 years ago you built a headquarters building thinking that someone would probably tear it down and rebuild it in 25 to 30 years,” Cummings said.

He thinks developers are again looking at long-lived, even multi-lived buildings: “Going back further, it was: ‘we need something that lasts 100 years’, and I think it’s coming back now .”

In the center of Birmingham, close to the canal and some of the city’s lively bars and restaurants, one of these major renovations is underway. 10 Brindleyplace, formerly NatWest (formerly the Royal Bank of Scotland) offices and apartments, has been stripped down and is covered in scaffolding and plastic sheeting.

Two buildings become one, and only the frame, the foundations and the basement have been kept, which will save embodied carbon.

“The life expectancy of plants [equipment and fittings] is 20 years,” said Nick White, asset manager at CBRE Global Investors, which is behind the £40m transformation. “The elevators, air conditioning, mechanical and electrical systems were at the end of their life and were breaking down.”

Rather than simply replacing worn-out equipment, the building is completely reconfigured inside and out, transformed into a modern workspace. About 212,000 square feet (19,695 square meters) of open office space is being created, larger windows are being installed, and six rooftop terraces are being built for outdoor work and meetings.

Work was planned and underway before Covid hit, but the developers believe the building is ready for the post-pandemic working world, equipped with a gym, bike racks and showers.

“Offices fundamentally have to work harder,” said Theo Holmes, director of CBRE’s office agencies team. “There is a flight to quality and creating an environment to get the most out of staff. The building must function to meet changing needs.

Due to be ready by the time Birmingham hosts the Commonwealth Games in July, the modernized building will be more efficient than before, powered by green energy, including 840 square feet of solar panels. These energy transformations are not limited to the most recent buildings. Historic sites, and even those with protected status, also get involved.

Grosvenor, the estate company of the Duke of Westminster, with links to London property dating back to 1677, is renovating its London portfolio, including 500 Grade I and II listed buildings.

To reduce its carbon emissions, the company’s UK property arm has pledged to invest £90 million by 2030 in upgrading and reducing operational emissions from its buildings.

A former ice factory, near Victoria Station in central London, is one such project. Built in 1830, it was more recently an automobile garage, but is being transformed into a five-story building for offices, shops and a rooftop restaurant.

Grosvenor Property UK chief executive James Raynor brought forward the company’s target date for achieving carbon neutrality by five years to 2030 last October. Along with modernization, this will be achieved through carbon offsetting and increasing the company’s use of renewable energy.

“Why wait until 2030 to compensate? Raynor said. “We know the challenges we face, and the climate crisis is here, flashing big warning lights.”

Grosvenor’s first net-zero carbon office development is also underway: a 1980s office block in Holbein Gardens, near Sloane Square, is being transformed into a modern workspace.

Raynor says tenants are demanding more efficient buildings and understand that these won’t necessarily be the newest structures.

“At the high end of the office market, we’re starting to see people moving away from buildings that don’t offer good environmental credentials,” he said.

“It’s in the interests of the developers, ourselves and others, to make sure everything has the best possible references, otherwise they’ll be left empty, which isn’t really the point.”

Alongside property companies, local authorities are increasingly turning to retrofitting to help them achieve their emissions targets.

Not everyone follows this path. Marks & Spencer was recently criticized for plans to demolish its 90-year-old flagship store near Marble Arch in London.

Following environmental concerns, London Mayor Sadiq Khan reviewed the plans but gave Westminster Council the green light to approve the project, allowing the retailer to demolish the art deco building.

Marks & Spencer said the site could not be developed further. It will be replaced by a 10-story structure containing a smaller store, as well as offices and a gym. It has been estimated that the construction will create so much carbon dioxide that 2.4 million trees would have to be planted to offset it.