Why Retrofitting is the Smart Choice for Commercial Buildings

Published: 25/03/2025

As the demand for sustainable development continues to grow, commercial property owners face a critical choice: retrofit or rebuild. While new builds may seem like the simpler option, retrofitting existing buildings offers significant benefits in terms of cost, carbon savings, and long-term value. Harris Associates can provide expert guidance and project delivery to help you unlock the full potential of retrofitting while navigating the complexities of commercial building upgrades.

The Case for Retrofitting

Many developers favour new builds due to the perceived predictability of costs and construction timelines. However, demolishing and rebuilding a property often results in significantly higher embodied carbon emissions, the carbon footprint associated with producing, transporting, and assembling building materials. Studies indicate that retrofits of commercial assets can reduce embodied carbon by 50% to 75% compared to new builds, especially when circular construction is considered.

Despite the built environment contributing to 25% of the UK’s total greenhouse gas emissions, there is currently no regulatory requirement to prioritise retrofit over demolition. However, this is changing, with increasing pressure on policymakers to introduce embodied carbon regulations and whole-life carbon assessments. Businesses that proactively invest in energy-efficient retrofits will be better positioned for future compliance while also benefiting from reduced operational costs and improved environmental credentials.

Overcoming the Challenges of Retrofitting

Retrofitting commercial buildings can be complex, often uncovering unforeseen issues that require careful planning and expertise. Additionally, the current tax system favours new builds exempt from VAT, whereas retrofits incur a 20% VAT charge. However, smart planning and expert project management can help mitigate these financial barriers, making retrofit a viable and sustainable solution.

At Harris Associates, we specialise in:

Strategic Retrofit Feasibility Studies – Assessing the viability and cost-effectiveness of retrofit solutions for your commercial portfolio.
Energy Performance Upgrades – Implementing improvements such as insulation, glazing, HVAC upgrades, and renewable energy systems to enhance efficiency and reduce operational costs.
Planning and Compliance – Navigating complex planning regulations, building control requirements, and sustainability standards to ensure your retrofit project aligns with industry best practices.
Project & Cost Management – Providing expert oversight to ensure your retrofit is delivered on time, within budget, and with minimal disruption to business operations.

The Future of Sustainable Development

Government incentives, such as faster planning approvals for retrofits, reductions in Community Infrastructure Levy (CIL) costs, and grants for energy efficiency improvements, could help level the playing field between retrofits and new builds. However, businesses that take a proactive approach will gain a competitive advantage, securing long-term operational savings and future-proofing their assets.

Why Choose Harris Associates?

Harris Associates is an award-winning RICS chartered consultancy offering a comprehensive range of services to investors and landlords to ensure that their properties are safe and compliant and remain valuable assets. With expertise across the built environment we deliver exceptional results for our clients so protect and enhance your investments, portfolio, and stakeholders with Harris Associates.

With deep expertise in building surveying, project management, and cost consultancy, we offer a comprehensive approach to retrofit projects. Our multidisciplinary team ensures that your project is compliant and maximises the financial and environmental benefits of repurposing existing structures.