Where should landlords focus retrofit effort? What the 2026 ND-NEED data tells us

The latest non-domestic energy data from the Department for Energy Security and Net Zero gives a useful perspective on where energy reduction efforts are likely to have the greatest impact.

The 2026 Non-Domestic National Energy Efficiency Data Framework, published on 30 September, analyses metered electricity and gas consumption across non-domestic buildings in England and Wales.

One figure stands out. Buildings with a floor area greater than 1,000 m² account for approximately 61% of electricity consumption and 70% of gas consumption, despite representing only around 7% of non-domestic buildings where floor area is known.

For landlords and managing agents, that is a useful reminder that portfolio decarbonisation does not necessarily start by treating every building equally.

Start with the buildings that matter most

A portfolio may contain dozens or hundreds of assets, but the largest opportunities are often concentrated in a much smaller number of buildings.

That does not mean every large building is inefficient. A large, well-operated building will naturally use more energy than a small one.

It does mean that larger assets are a sensible place to start when deciding where detailed engineering time and capital expenditure should be directed.

The first stage should therefore be a simple portfolio screen using actual electricity and gas consumption, floor area, building use and occupancy, EPC rating, plant type, condition and age, operating hours, and planned refurbishment or lease events.

That quickly separates buildings requiring detailed investigation from those where further work is unlikely to produce a meaningful return.

Building type matters

The DESNZ data also shows substantial differences between sectors. For 2024, hospitality buildings had the highest median energy intensity, followed by shops and healthcare buildings. Median electricity intensities were approximately 160 kWh/m² for hospitality, 108 kWh/m² for shops and 82 kWh/m² for healthcare. Median gas intensities were approximately 279 kWh/m², 190 kWh/m² and 161 kWh/m² respectively.

At a national level, factories account for the largest share of both electricity and gas consumption. Offices account for approximately 15% of non-domestic electricity consumption.

These figures are useful benchmarks, although they should not be treated as design targets. A building's consumption can be affected by occupancy, operating hours, tenant equipment, process loads, controls, weather and many other factors. The ND-NEED data also does not identify what the energy is being used for within each building. The engineering work still needs to happen.

EPCs only tell part of the story

An EPC is useful for understanding the theoretical energy performance of a building and remains important when considering future asset strategy. It does not tell you how the building is actually operating.

A relatively good EPC can still sit alongside excessive operational consumption because of poor controls, extended operating hours, simultaneous heating and cooling, failing plant or tenant loads. Equally, an older building with a weaker EPC may be operating reasonably efficiently within the constraints of its fabric and services.

For existing commercial buildings, we generally get a better picture by looking at the EPC alongside actual energy data and the condition of the installed systems.

Look for natural intervention points

Decarbonisation does not always require an immediate wholesale replacement of building services. Often the best opportunity arises when an existing system is already approaching replacement.

Examples include ageing gas boilers requiring renewal, chillers or DX equipment approaching end of life, obsolete BMS controls, inefficient ventilation plant, lighting refurbishment, landlord CAT A works, major tenant fit out, façade or roof refurbishment, and planned electrical infrastructure upgrades.

These events create an opportunity to assess whether like-for-like replacement remains sensible or whether the building should move towards a different servicing strategy. That might mean heat pumps, revised ventilation arrangements, improved controls, lower-temperature heating, electrical infrastructure upgrades or better metering.

The important point is to understand the implications before the existing plant fails and the project becomes an emergency replacement.

A practical approach for commercial portfolios

For a landlord or managing agent, we would normally suggest three levels of review.

1. Portfolio screening: use available consumption, EPC, floor area and asset data to identify the buildings worth looking at first.

2. Targeted engineering review: review plant condition, controls, capacity, operating strategy and realistic opportunities for improvement.

3. Investment planning: develop sensible interventions around planned capital expenditure, lease events and plant replacement rather than producing a theoretical net zero plan that is difficult to deliver.

The aim is not to generate another lengthy sustainability report. It is to establish which buildings need investment, what should be done and when it makes commercial sense to do it.

What this means for landlords

The latest DESNZ figures reinforce something we see regularly when reviewing existing buildings: a relatively small number of larger assets can dominate a portfolio's overall energy use.

Those buildings deserve the most attention. A focused technical review combining actual energy consumption, EPC information and building services condition can provide a much stronger basis for investment decisions than looking at any one of those measures in isolation.

J-WEBS supports commercial landlords and managing agents with building services surveys, technical due diligence, EPC improvement studies, plant replacement feasibility and decarbonisation planning.

Source: Department for Energy Security and Net Zero, Non-Domestic National Energy Efficiency Data Framework 2026, published 30 September 2026.