Do You Need an EPC to Sell or Rent a Commercial Property?

If you are planning to sell or rent a commercial property, you will usually need a valid Commercial Energy Performance Certificate (EPC).

A Commercial EPC gives prospective buyers or tenants information about the energy performance of the building before they commit to the property.

However, the rules around marketing, exemptions, lease renewals and Minimum Energy Efficiency Standards (MEES) can make the requirements confusing.

This guide explains when you need a Commercial EPC to sell or rent a property, when the certificate must be available, the main exemptions, potential penalties and what landlords need to know about MEES.

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🏢 Do You Need an EPC to Sell a Commercial Property?

In most cases, yes.

If you are selling a non-domestic building, you will normally need to make a valid Commercial EPC available to prospective buyers.

The EPC should help potential buyers understand the energy performance of the building before making their decision.

The seller must provide the EPC free of charge to a prospective buyer at the earliest opportunity and provide a copy to the successful buyer.

If a valid EPC already exists for the property, you may be able to use the existing certificate rather than commissioning another assessment.

Commercial EPCs are generally valid for 10 years, unless replaced by a newer certificate.

If you’re unsure what information appears on the certificate, read our complete guide to what a Commercial EPC is.

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🔑 Do You Need an EPC to Rent a Commercial Property?

Again, in most cases, yes.

When a commercial property is offered for rent, the landlord will normally need to make a valid EPC available to prospective tenants.

This applies to many types of non-domestic property, including:

• Offices
• Shops
• Warehouses
• Industrial units
• Restaurants
• Commercial units
• Mixed-use developments with separately assessed commercial areas

The EPC should be made available to prospective tenants at the appropriate stage of the letting process and provided to the person who ultimately takes the tenancy.

For landlords, however, simply having an EPC may not be enough.

You may also need to comply with the Minimum Energy Efficiency Standards (MEES) before letting the property.

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📋 When Must the Commercial EPC Be Available?

If you are selling or renting a commercial property, you should deal with the EPC before leaving it until the transaction is nearly complete.

Where no valid EPC exists, an EPC must be commissioned before the property is marketed.

The certificate itself does not necessarily need to have been completed before the first day of marketing, provided the appropriate requirements for commissioning and obtaining it are followed.

The EPC must then be made available to prospective buyers or tenants at the earliest opportunity.

This means you should arrange your Commercial EPC early rather than waiting until contracts or lease documents are ready.

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📣 Can You Market a Commercial Property Without an EPC?

This is an area where there is often confusion.

If there is no valid EPC for the building, an EPC should be commissioned before marketing begins.

However, this does not necessarily mean you must wait until the completed certificate is in your possession before the property can first be advertised.

Government guidance allows first-day marketing while the EPC is being obtained, provided the EPC has been commissioned and the relevant requirements are followed.

Where the EPC rating is available, advertisements in commercial media should clearly show the building’s energy rating.

For landlords and sellers, the simplest approach is therefore to arrange the Commercial EPC as early as possible.

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🔍 How Do I Know If My Commercial Property Already Has an EPC?

Before ordering another assessment, it is worth checking whether the property already has a valid certificate.

Commercial EPCs are generally valid for 10 years.

Therefore, if a valid EPC was previously produced for the sale, rental or construction of the property, you may be able to reuse it.

If more than one EPC has been produced, the most recent certificate is the valid one.

However, even if an existing EPC remains legally valid, you may want to consider whether a new assessment would be beneficial following significant energy efficiency improvements to the building.

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🏷️ What EPC Rating Do You Need to Rent a Commercial Property?

This is where Commercial EPC requirements and MEES requirements become separate but closely connected issues.

For privately rented non-domestic properties in England and Wales that fall within the MEES Regulations, landlords generally need an EPC rating of at least E, unless a valid exemption applies.

Since 1 April 2023, this requirement has applied to all privately rented non-domestic properties covered by the regulations, including existing tenancies.

Therefore:

EPC A–E
The property meets the current minimum EPC rating requirement, although other compliance considerations may still apply.

EPC F or G
If the property is covered by MEES, the landlord will generally need to make appropriate improvements or register a valid exemption before the property can legally continue to be let.

If your commercial property has a low EPC rating, visit our MEES Compliance Services page before deciding which improvements to undertake.

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⚠️ Can You Rent a Commercial Property With an F or G EPC?

Not normally if the property is covered by the current non-domestic MEES Regulations.

A privately rented commercial property within the scope of MEES generally needs to achieve at least an E rating.

However, MEES includes exemptions for certain circumstances.

For example, an exemption may potentially apply where:

• Required improvements fail the applicable seven-year payback test
• All relevant improvements have been completed but the building remains below E
• Required third-party consent cannot be obtained
• Certain wall insulation would negatively affect the building
• Qualifying improvements would reduce the property’s value by more than 5%

The precise evidence requirements vary according to the exemption.

Importantly, where an exemption is required, it generally needs to be registered before the landlord can rely on it.

For more information, read our complete guide to MEES exemptions.

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🏷️ What Happens to a MEES Exemption When a Commercial Property Is Sold?

This is particularly important when purchasing an investment property.

A registered MEES exemption does not necessarily transfer to the new owner when the property is sold or otherwise transferred.

If a rented property changes ownership, an existing exemption can cease to be effective for the new landlord.

Therefore, anyone purchasing a commercial investment property with an EPC rating of F or G should investigate the energy efficiency and MEES position carefully.

The new landlord may need to improve the property or register their own exemption where one legitimately applies.

This is one reason why the EPC rating should form part of the due diligence when buying commercial property.

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🏛️ Are Any Commercial Properties Exempt From Having an EPC?

Yes. Certain buildings may not require an EPC.

Examples can include:

• Some listed or officially protected buildings where meeting minimum energy performance requirements would unacceptably alter their character or appearance
• Temporary buildings intended to be used for two years or less
• Buildings used as places of worship or for religious activities
• Certain industrial sites, workshops and non-residential agricultural buildings with low energy demand
• Detached buildings with a total useful floor area below 50m²
• Certain buildings due to be demolished where the relevant conditions are satisfied

There are also specific circumstances involving vacant buildings intended for demolition and redevelopment.

However, do not assume that a property is exempt simply because it is listed, old, small or unusual.

The precise circumstances matter.

If there is uncertainty, establish whether the exemption applies before marketing or completing the transaction.

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🔄 Do You Need a New EPC Every Time the Tenant Changes?

Not necessarily.

A Commercial EPC is generally valid for 10 years.

Therefore, if the building already has a valid EPC, the same certificate can normally be provided to a new prospective tenant during that validity period.

You do not automatically need a brand-new EPC every time a tenancy changes.

However, if a newer EPC has subsequently been lodged, the newer certificate becomes the valid EPC.

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📝 Do You Need an EPC for a Lease Renewal?

Not every lease transaction is treated in exactly the same way for EPC purposes.

Government guidance distinguishes between transactions that count as a sale or rent and certain transactions that do not.

For example, straightforward lease renewals or extensions are not generally treated as a sale or rent for the purpose of triggering the EPC requirement.

However, the situation can become more complicated where the building, tenancy or property configuration changes.

An assignment of a lease, where the leasehold interest passes to another person, can require an EPC. Subletting can also trigger EPC requirements.

If the circumstances are unusual, seek appropriate professional or legal advice rather than assuming the transaction is exempt.

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🧱 What If You Are Selling or Renting Part of a Commercial Building?

Commercial buildings are often divided into several units.

For example, a building might contain:

• Ground-floor retail units
• Separate offices
• Individual warehouse units
• Multiple floors occupied by different tenants

The EPC requirements can depend on how the building is constructed, serviced and designed for separate occupation.

Changes to the number of parts designed or altered for separate occupation can also trigger EPC requirements where the changes involve providing or extending fixed heating, air-conditioning or mechanical ventilation systems.

If you are splitting, converting or substantially altering a commercial building, it is sensible to establish the EPC and Building Regulations requirements early.

Depending on the project, you may also require SBEM Calculations.

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🧮 Is a Commercial EPC the Same as SBEM?

No.

Although Commercial EPCs and SBEM are closely related, they serve different purposes.

Commercial EPC

Shows the calculated energy performance of the commercial building and is commonly required when applicable premises are constructed, sold or rented.

SBEM Calculations

Are commonly used to demonstrate compliance with the energy efficiency requirements of Part L for applicable new and altered non-domestic buildings.

Therefore, a developer constructing or converting commercial premises may require SBEM calculations during the project and a Commercial EPC at completion.

Visit our SBEM Calculations service page if your property is undergoing building work rather than simply being sold or rented.

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💷 How Much Does a Commercial EPC Cost?

There is no single fixed Commercial EPC price because commercial buildings vary considerably.

The quotation can depend on factors including:

• Building size
• Layout
• Number of zones
• Heating and cooling systems
• Ventilation
• Lighting
• Complexity
• Available plans and information
• Property location
• Level of assessor required

For a detailed explanation, read our guide to how much a Commercial EPC costs in the UK.

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🔍 What Happens During a Commercial EPC Assessment?

A qualified Non-Domestic Energy Assessor collects information about the building and its services.

Depending on the property, this can include:

• Building dimensions
• Construction
• Walls, roofs and floors
• Windows and glazing
• Heating
• Cooling
• Ventilation
• Lighting
• Hot water
• Building controls
• Renewable technologies

The assessor uses the information to produce the energy model and calculate the building’s EPC rating.

Read our complete guide to what happens during a Commercial EPC assessment for the full step-by-step process.

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⚖️ What Are the Penalties for Not Having a Commercial EPC?

Failing to make an EPC available to a prospective buyer or tenant when required can result in financial penalties.

For non-domestic buildings, the penalty is generally calculated at 12.5% of the building’s rateable value, subject to a:

• Minimum penalty of £500
• Maximum penalty of £5,000

Where the formula cannot be applied, a default penalty of £750 may apply.

A further fixed penalty can also apply for failing to provide an EPC to an enforcement officer when properly requested.

The cost of obtaining a Commercial EPC is therefore relatively small compared with the potential cost and disruption of non-compliance.

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📈 Should You Improve the EPC Rating Before Selling a Commercial Property?

Not necessarily, but it can be worth considering.

Unlike a landlord letting a property covered by MEES, a seller does not automatically have to improve a building simply because the EPC recommends energy efficiency measures.

However, buyers are increasingly interested in:

• Energy costs
• EPC ratings
• Future improvement requirements
• MEES exposure
• Sustainability
• Potential refurbishment costs

This can be particularly important when selling an investment property that the buyer intends to continue renting.

A poor EPC rating could therefore become part of the purchaser’s due diligence and negotiations.

If the rating is low, understanding the potential improvement options before marketing can put you in a stronger position.

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🏙️ Selling or Renting Commercial Property in London

The core Commercial EPC requirements also apply to commercial properties in London.

However, London’s commercial building stock can be particularly complex, including converted buildings, mixed-use developments, multi-let offices, retail units and large commercial premises.

If your property is in the capital, visit our EPC London page for more information about arranging an assessment.

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❓ Commercial EPC Sale and Rental FAQs

Do I need an EPC before selling a commercial property?

In most cases, yes. A valid EPC must normally be made available to prospective buyers when an applicable commercial property is being sold.

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Do I need an EPC before renting out a commercial property?

Usually, yes. In addition, privately rented non-domestic properties covered by MEES generally need an EPC rating of at least E unless a valid exemption applies.

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Can I advertise a commercial property before the EPC is completed?

Potentially, yes. If no valid EPC exists, it must be commissioned before marketing. Government guidance allows first-day marketing while the certificate is being obtained, provided the applicable requirements are followed.

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Does the EPC rating need to appear in commercial property advertising?

Where available, the building’s energy performance rating should be shown in advertisements in commercial media.

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Can I sell a commercial property with an F or G EPC?

An F or G rating does not automatically prevent a commercial property from being sold.

However, a poor rating can be significant to a purchaser, particularly where the property is rented or will be rented and MEES requirements apply.

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Can I rent a commercial property with an F or G EPC?

If the property falls within the non-domestic MEES Regulations, it generally cannot be legally let or continue to be let below EPC E unless an applicable exemption has been properly registered.

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How long does a Commercial EPC last?

A Commercial EPC is generally valid for 10 years, unless it is replaced by a newer certificate.

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Do I need another EPC when a new tenant moves in?

Not automatically. If an existing EPC remains valid, it can normally be reused.

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Who is responsible for obtaining the Commercial EPC?

When selling, responsibility normally sits with the seller. When renting, it normally sits with the landlord.

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Where can I check whether a Commercial EPC already exists?

Commercial EPCs can be checked through the official Energy Performance of Buildings Register.

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⭐ Arrange a Commercial EPC Before Selling or Renting

If you’re preparing to sell or rent a commercial property, dealing with the EPC early can help prevent unnecessary delays later in the transaction.

Assessment Hive provides Commercial EPC assessments for:

• Offices
• Shops
• Warehouses
• Industrial units
• Restaurants
• Commercial units
• Other non-domestic properties

We provide Commercial EPC services across the UK and can help establish the appropriate assessment requirements for your building.

Visit our Commercial EPC services page or contact Assessment Hive to request a quote.

📞 Request your Commercial EPC today
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