On January 25, 2025, Bueno Analytics, in partnership with Optimised, hosted a UK Masterclass event in London to explore how data-driven strategies are shaping the future of commercial building performance and decarbonisation. The event brought together leading experts from across the real estate, sustainability, and technology sectors, providing valuable insights into how landlords, asset managers, and tenants can work together to improve building performance, reduce operational carbon emissions, and enhance asset value.
The first UK Masterclass session, featuring Mark Caldwell (AshbyCapital) and Hugh Amoyal (Bueno Analytics), focused on the UK’s evolving approach to sustainability in commercial buildings, with a particular emphasis on:
- The role of building analytics in improving operational performance.
- How NABERS UK and CRREM are helping investors and landlords make data-driven decisions.
- The challenges and opportunities in aligning tenant and landlord sustainability goals.
With the UK real estate sector under increasing pressure to meet net-zero carbon targets, the discussion provided practical guidance on how data and analytics can bridge the gap between sustainability goals and real-world building performance.
This UK Masterclass was part of Bueno Analytics’ commitment to supporting industry-wide learning—helping stakeholders make more informed, proactive decisions rather than simply complying with regulations.
AshbyCapital is a UK-based real estate firm, specialising in the acquisition, development and redevelopment of real estate assets. Today they have £1.27 billion in assets across 8 properties (Retail & CRE) totalling just over 1 million square feet.
There was so much great content to come out of the session. So here are the top findings from the UK Masterclass.
Click on a topic below to jump to the section:
- Building Analytics is the Future of Building Management
- NABERS and CRREM Play a Crucial Role in Avoiding Stranded Assets
- The Shift from Short-Term Energy Initiatives to Long-Term Optimisation
- The UK Market Faces Structural Challenges in Tenant-Landlord Alignment
- NABERS Helps Identify Underlying Issues Within Buildings and Supports CRREM in Avoiding Stranded Asset Risk
- Tenant Engagement is Essential for Energy Optimisation
- Proactive Fault Detection Prevents Performance Degradation
- NABERS Provides a Learning Opportunity Beyond Just Ratings
- Higher NABERS Ratings Correlate with Greater Financial Returns
- Future-Proofing Through Data-Driven Decision Making
- Bueno’s Perspective: The Future of Performance-Based Building Management
- UK Masterclass Summary: Bringing It All Together
- Final Thought: What Comes Next?
1. Building Analytics is the Future of Building Management
Why Building Analytics Has Become Essential
One of the most important takeaways from the session was AshbyCapital’s realisation that traditional approaches to building management are no longer sufficient. Mark Caldwell outlined how the company had already implemented a range of energy efficiency initiatives, but despite these efforts, they found that without a continuous, data-driven approach, inefficiencies remained hidden.
The commercial property sector has long relied on periodic assessments and reactive maintenance to manage building performance. However, as Mark highlighted, this approach does not provide the level of granularity needed to drive real improvement. AshbyCapital recognised that ongoing monitoring and intelligent analytics are essential to:
- Identify inefficiencies in real time rather than waiting for annual audits.
- Ensure long-term asset value protection by aligning sustainability goals with financial performance.
- Reduce reliance on reactive maintenance, allowing facility managers to proactively optimise operations.
The Evolution from ‘Checking Performance’ to ‘Improving Performance’
Historically, many real estate firms have focused on collecting sustainability data—tracking metrics like energy use, waste, and water consumption. While this has been useful for reporting and compliance, Mark noted that simply measuring energy does not reduce it.
AshbyCapital realised that, to remain competitive and compliant with evolving UK regulations, they needed to move beyond reporting and into performance-driven management. This shift meant embedding intelligent analytics tools into their operations to provide:
- Continuous feedback loops on system performance.
- Live operational insights that allow faster decision-making.
- Historical trend analysis to predict future inefficiencies before they escalate.
Lessons from the Transition
Mark shared that one of the key challenges in making this shift was ensuring that internal teams and service providers were aligned. While the company had access to extensive data, translating it into actionable insights required better collaboration between asset managers, facility management teams, and sustainability officers.
The discussion also highlighted that adopting building analytics is not just about installing new software—it requires a mindset shift across the organisation. Teams must be trained to interpret and act on data insights, ensuring that performance goals are embedded across all levels of building management.
What This Means for the UK Market
This realisation is particularly relevant to the UK market, where many commercial buildings still operate with outdated performance tracking. The session reinforced that for asset managers, the question is no longer “Should we use building analytics?” but rather “How quickly can we implement them?”
Key takeaways for industry professionals:
- Proactive building management is no longer optional. Regulatory frameworks, tenant expectations, and investor demands are all shifting toward measured, verifiable building performance.
- Analytics-driven decision-making leads to better financial outcomes. Improving energy efficiency and operational performance leads to higher rental yields and asset value retention.
- Implementation requires more than just technology—it requires organisational change. Companies that invest in people, processes, and education alongside analytics will see the greatest benefits.
2. NABERS and CRREM Play a Crucial Role in Avoiding Stranded Assets
Why NABERS and CRREM Matter in the UK Market
As regulatory and investor pressure increases, commercial landlords are under greater scrutiny to ensure that their buildings are not at risk of becoming stranded assets—properties that lose value due to poor energy performance or an inability to meet sustainability targets.
In this session, Mark Caldwell explained how NABERS UK and CRREM (Carbon Risk Real Estate Monitor) are now essential tools in future-proofing assets and mitigating financial risk. He shared how AshbyCapital is using these frameworks to assess and improve their portfolio’s long-term performance.
Unlike previous benchmarking tools, which have focused on design-based energy models, NABERS and CRREM provide real-world performance tracking, allowing landlords to:
- Identify which buildings are at risk of underperformance.
- Ensure compliance with increasingly stringent ESG (Environmental, Social, and Governance) reporting standards.
- Secure green financing opportunities by demonstrating measurable energy efficiency improvements.
How NABERS and CRREM Work Together
One of the key takeaways from the discussion was how NABERS and CRREM complement each other:
- CRREM provides a financial risk lens, helping investors and asset managers determine whether a building is at risk of becoming a stranded asset due to poor environmental performance.
- NABERS provides a detailed, operational performance benchmark, giving landlords a clear roadmap for energy efficiency improvements.
By integrating both, property owners can move from risk assessment (CRREM) to performance action (NABERS)—ensuring that assets are not only compliant but also financially resilient in the long term.
Why Stranded Asset Risk is Growing
Mark highlighted that in the UK, stranded asset risk is becoming an urgent issue, with increasing legislation around building performance. Some of the major drivers include:
- Minimum Energy Efficiency Standards (MEES) – The UK government has set clear expectations for energy performance in commercial buildings, with many properties at risk of becoming un-lettable if they do not meet the required EPC (Energy Performance Certificate) ratings.
- GRESB and Investor Expectations – More investors are aligning with GRESB (Global Real Estate Sustainability Benchmark), meaning poor-performing assets may struggle to attract institutional investment.
- Rising Costs – As carbon pricing mechanisms become more aggressive, high-emission buildings will face increasing financial burdens, further reinforcing the need for data-driven energy management.
AshbyCapital’s Approach: Using NABERS to Take Action
Rather than waiting for regulations to dictate next steps, AshbyCapital has proactively engaged in NABERS assessments to understand where inefficiencies exist across their portfolio.
A key insight Mark shared was that even if a company does not disclose its NABERS ratings publicly, the learning process itself is invaluable.
- Assessments uncover inefficiencies that are often hidden, allowing for targeted interventions.
- NABERS ratings create a clear framework for aligning operational decisions with long-term sustainability goals.
- Benchmarking against peers ensures competitiveness—assets that don’t improve risk being outperformed in the market.
What This Means for the UK Market
For other commercial landlords and asset managers, the key message from this discussion was clear:
> Ignoring NABERS and CRREM (and other rating platforms) puts assets at risk. Without real-world energy performance tracking, properties are vulnerable to financial devaluation.
> Early adoption gives landlords a competitive advantage. Buildings that start the NABERS journey now will be better positioned when regulatory and investor expectations tighten.
> Performance-based benchmarking is the new industry standard. NABERS, CRREM, BREEAM and GRESB are shifting the focus toward measured energy outcomes rather than theoretical compliance.
3. The Shift from Short-Term Energy Initiatives to Long-Term Optimisation
Moving Beyond Quick Wins to Sustainable, Scalable Change
One of the key insights from Mark Caldwell’s discussion was that while short-term energy-saving measures can deliver initial improvements, they often fail to sustain long-term building efficiency. AshbyCapital had already implemented a range of energy reduction initiatives, but they recognised that without continuous optimisation, energy drift and performance loss would inevitably occur over time.
Mark highlighted how the industry’s historical approach to sustainability has often been reactive—focusing on:
- One-off retrofits or equipment upgrades.
- Basic energy audits that provide insights but lack ongoing tracking.
- Reducing energy use only in response to rising costs or regulations.
While these strategies have merit, they do not provide a pathway for long-term energy and carbon reduction. Instead, AshbyCapital realised that a continuous, data-driven approach was necessary to ensure that gains were not only achieved but maintained and improved upon.
Why One-Time Energy Initiatives Are Not Enough
The session highlighted the common pitfalls of short-term sustainability strategies, including:
- Energy Performance Drift – Many buildings initially achieve energy savings through efficiency upgrades, but over time, without active monitoring, systems revert to inefficient states due to operational inconsistencies, equipment wear, or changes in occupancy.
- Lack of Accountability Across Teams – Sustainability initiatives often rely on a single intervention, but without ongoing engagement from facility managers, asset owners, and tenants, these measures can lose effectiveness.
- Missed Financial Opportunities – Buildings that rely on one-time interventions risk missing long-term cost savings that come from proactive, real-time optimisation rather than periodic adjustments.
How AshbyCapital is Transitioning to a Long-Term Optimisation Strategy
Recognising these challenges, AshbyCapital has moved from a static, one-off sustainability approach to a more dynamic, ongoing optimisation model. This shift is based on the understanding that true energy efficiency comes from continuous tracking, insights, and adjustments, rather than isolated interventions.
Their new focus includes:
- Ongoing system monitoring to prevent energy drift – Instead of waiting for performance to decline before taking action, live tracking ensures that inefficiencies are detected before they become costly issues.
- Integrating operational data into asset management decisions – Energy performance is no longer seen as just an operational concern but as a key financial and strategic asset consideration.
- Engaging facility managers and occupiers in long-term performance – Rather than relying on building owners alone, the focus is on bringing FM teams and tenants into the conversation to ensure that energy savings are maintained beyond initial interventions.
Lessons for the Industry: Why Long-Term Thinking is Now Essential
A major takeaway from the discussion was that short-term fixes can no longer be the default. The industry is moving toward a performance-driven approach, where ongoing data analysis ensures that energy efficiency gains do not disappear after implementation.
> Sustainability must be embedded into daily building operations. One-time measures do not create lasting impact—continuous tracking and engagement are required.
> Proactive optimisation prevents financial and energy waste. Buildings that fail to maintain consistent efficiency improvements will face higher costs, increased emissions, and greater investor scrutiny.
> Data-driven strategies provide long-term resilience. Asset managers must move beyond seeing sustainability as a project-based initiative and instead integrate it into long-term investment strategies.
4. The UK Market Faces Structural Challenges in Tenant-Landlord Alignment
A Unique Market Challenge: Why the UK Struggles More Than Other Regions
One of the most important discussions in the session was how the UK’s commercial property structure presents a fundamental challenge to improving building performance. Unlike Australia, Europe, and parts of North America, where landlords often have greater control over whole-building energy management, the UK’s leasing and operational structure creates significant barriers to collaboration between landlords and tenants.
Mark Caldwell highlighted that even when landlords want to invest in energy optimisation, their ability to implement changes is often limited by how responsibilities are divided between them and their tenants. This is one of the key reasons why many commercial buildings in the UK struggle to reach their full energy efficiency potential, even when compared to markets with similar NABERS frameworks.
The Core Structural Challenges in the UK
The discussion identified three major structural issues that make it difficult to achieve large-scale decarbonisation in UK commercial buildings:
- Split Incentives Between Landlords and Tenants
- In many cases, landlords pay for energy efficiency upgrades, but tenants benefit from the savings. This often results in landlords having little financial incentive to invest in deep efficiency measures.
- Conversely, tenants control much of the energy consumption in a building but often lack visibility into their actual energy use, making it difficult for them to actively engage in efficiency initiatives.
- Lack of Data-Sharing Agreements
- Unlike in Australia, where NABERS is widely integrated into standard leasing agreements, UK landlords often do not have access to tenant energy data, making it difficult to measure whole-building performance.
- Without access to tenant-level energy consumption, landlords cannot accurately benchmark, optimise, or set realistic reduction targets.
- Limited Influence Over Occupier Behaviour
- Many tenants operate independent HVAC, lighting, and plug load systems, which do not always align with the base building’s efficiency strategies.
- Without incentives or operational alignment, landlords struggle to influence how efficiently tenants use energy, even in high-performing buildings.
How This Structural Challenge Impacts NABERS UK Ratings
One of the biggest takeaways from the discussion was how these barriers make it more difficult for UK buildings to achieve high NABERS UK ratings compared to other markets.
- A high NABERS UK rating requires accurate measurement of whole-building energy use, but in the UK, incomplete data from tenant spaces means many landlords cannot fully track or verify performance.
- Landlords often optimise base-building energy use, but if tenants are inefficient, the whole-building performance remains poor, lowering the potential NABERS UK score.
- NABERS UK provides a framework to bridge this gap, as it offers a clear methodology for performance measurement and allows both landlords and tenants to see the impact of their actions.
How Some Landlords Are Overcoming These Barriers
Mark shared that while these challenges are deeply embedded in the UK market, there are ways to mitigate them and drive collaboration.
> Encouraging Green Lease Clauses – While still not standard across the UK, some landlords are beginning to include data-sharing clauses and efficiency targets in new lease agreements, helping align landlord and tenant interests.
> Rolling Out Real-Time Energy Dashboards – By giving tenants direct visibility into their energy consumption, landlords can engage occupiers in efficiency efforts rather than relying solely on operational changes at the base-building level.
> Aligning with NABERS Tenancy Ratings – NABERS UK has introduced a NABERS Tenancy rating, which focuses specifically on tenant-controlled areas, allowing occupiers to track their own performance and align with whole-building efficiency goals.
What This Means for the Future of the UK Market
For commercial landlords and asset managers, the key takeaway from this discussion was that solving the tenant-landlord alignment issue is one of the most important steps in achieving real decarbonisation.
> Data transparency is critical. Without proper access to tenant energy data, landlords cannot fully optimise their buildings, making whole-building decarbonisation impossible.
> NABERS can serve as a bridge. The NABERS methodology provides a clear process for both landlords and tenants to engage in energy efficiency initiatives together.
> Long-term change requires new leasing strategies. Landlords who integrate data-sharing agreements and performance-based lease clauses will be better positioned to meet future sustainability demands.
5. NABERS Helps Identify Underlying Issues Within Buildings and Supports CRREM in Avoiding Stranded Asset Risk
How NABERS UK and CRREM Work Together to Protect Asset Value
One of the most significant takeaways from the discussion was how NABERS UK is not just a certification tool—it’s an operational benchmark that helps landlords and asset managers understand the true energy performance of their buildings. Unlike traditional ESG reporting, which focuses on policies and commitments, NABERS provides a measured, verifiable rating based on actual energy use.
During the session, Mark Caldwell discussed how NABERS and CRREM (Carbon Risk Real Estate Monitor) are being used together to identify stranded asset risk. CRREM assesses whether a building is on track to meet net-zero requirements or whether it poses a financial risk due to underperformance. NABERS then provides a clear roadmap for action, allowing asset managers to make the improvements necessary to avoid regulatory non-compliance, reduced asset value, or increased operating costs.
In simple terms:
> CRREM highlights financial risk exposure by projecting a building’s future carbon trajectory.
> NABERS provides the operational framework to improve performance and avoid falling into CRREM’s risk categories.
The Importance of NABERS UK in Understanding Where Buildings Are Underperforming
A key insight shared in the session was that the NABERS process itself provides a major learning opportunity. Even for landlords that haven’t disclosed their NABERS scores publicly, going through the process has revealed hidden inefficiencies that would have otherwise gone unnoticed.
Some of the most common issues that NABERS UK has uncovered in UK commercial buildings include:
- Overuse of HVAC systems – Many buildings operate HVAC systems beyond necessary hours, leading to excessive energy waste.
- Lack of alignment between landlord and tenant energy controls – Base-building systems and tenant-controlled energy use are often out of sync, making the whole-building performance far worse than expected.
- Poor calibration of BMS (Building Management Systems) – Many buildings rely on outdated settings that no longer reflect real occupancy patterns, leading to unnecessary heating, cooling, and ventilation use.
- Underperforming equipment – NABERS assessments have helped identify inefficient chillers, boilers, and lighting systems that were not flagged by traditional maintenance schedules.
By benchmarking against other buildings with similar usage patterns, NABERS UK provides a real-world comparison rather than an arbitrary energy efficiency rating. This real performance benchmarking is a critical differentiator from older ESG assessment methods, which often fail to capture actual operational efficiency.
The Financial Risk of Ignoring NABERS UK and CRREM
One of the key takeaways from the session was that the cost of inaction is rising. As financial institutions increasingly integrate GRESB (Global Real Estate Sustainability Benchmark), NABERS UK, and CRREM into their lending criteria, buildings that fail to achieve high ratings may struggle to attract investment or refinancing opportunities.
Some of the major financial risks associated with poor energy performance include:
- Regulatory Risk – Government policies, including Minimum Energy Efficiency Standards (MEES), are becoming stricter. Poor-performing buildings could become legally unlettable if they fail to meet minimum standards.
- Devaluation of Assets – Buildings with low NABERS scores or those flagged as high risk by CRREM may see reduced property value as sustainability-conscious investors prioritise higher-rated assets.
- Higher Operational Costs – Inefficient buildings have higher energy bills, increased maintenance costs, and more expensive compliance obligations, making them financially burdensome over time.
Key message:
> NABERS is not just a rating—it’s a tool that helps landlords diagnose and address inefficiencies before they impact asset value.
> Using NABERS UK and CRREM together ensures that performance risks are identified early, allowing landlords to take proactive steps toward decarbonisation.
What This Means for the UK Market
> Ignoring NABERS and CRREM is no longer an option. Financial institutions are now using these frameworks to determine investment and loan eligibility, making performance benchmarking an industry standard.
> NABERS provides a clear roadmap for building optimisation. Even if landlords don’t plan to publicly disclose ratings, the assessment process itself provides valuable insights into operational inefficiencies.
> Proactive energy performance tracking will become a competitive advantage. Buildings that can demonstrate measurable, data-driven improvements will have greater market appeal to investors, occupiers, and sustainability-conscious stakeholders.
6. Tenant Engagement is Essential for Energy Optimisation
Why Occupiers Play a Critical Role in Energy Performance
One of the most crucial insights from the discussion was that building energy performance is not just a landlord responsibility—tenants play an equally significant role. A high-performance building can still underperform in energy efficiency if tenants are not engaged in optimisation efforts.
Mark Caldwell highlighted that without active tenant participation, even the most well-optimised buildings can suffer from excessive energy consumption, misalignment between base-building and tenant systems, and missed sustainability targets.
This is particularly important in the UK, where, as discussed in Point 4, the structural divide between landlords and tenants makes it harder to drive whole-building improvements. Many tenants:
> Control a significant portion of the building’s total energy use but often have limited visibility into their own consumption.
> Lack awareness of how their operational choices impact whole-building efficiency, leading to unnecessary waste.
> Prioritise their own operational needs over sustainability goals, meaning efficiency measures need to be framed as a financial and operational benefit, not just an environmental obligation.
AshbyCapital’s Approach to Tenant Engagement
Recognising these challenges, AshbyCapital has focused on actively engaging occupiers to ensure that efficiency strategies are aligned between both parties. Mark shared some of the key initiatives they’ve implemented to encourage tenant participation:
- Real-Time Energy Dashboards in Building Receptions
- These dashboards provide live insights into energy use, water consumption, waste management, and air quality, allowing tenants to see how their actions impact overall building performance.
- This creates a sense of shared responsibility, where energy performance is not just a “landlord issue” but something that occupiers can actively influence.
- Biannual Sustainability Meetings with Occupiers
- AshbyCapital hosts regular tenant engagement sessions to educate occupiers on energy efficiency strategies, NABERS performance metrics, and decarbonisation targets.
- These sessions ensure that tenants are not only aware of the building’s sustainability goals but are also given practical steps to align their operations with efficiency objectives.
- Data-Driven Feedback for Occupiers
- Mark highlighted that giving tenants personalised energy performance data has been far more effective than simply enforcing broad sustainability policies.
- By showing occupiers how their individual energy use compares to benchmarks, tenants are encouraged to adopt behavioural changes that contribute to lower overall consumption.
- Weightron Machines for Waste Tracking and Competitions
- AshbyCapital has introduced waste tracking systems that encourage tenants to reduce their environmental footprint through gamification.
- This type of friendly competition has been successful in driving engagement and building awareness around sustainability initiatives.
Why Tenant Engagement is a Game-Changer for NABERS Performance
A key discussion point was that NABERS ratings do not just reflect base-building efficiency—they also account for how tenants use energy within the space. Without active tenant participation, landlords may struggle to improve their NABERS scores, even if their own systems are operating efficiently.
Some of the biggest tenant-related factors affecting NABERS performance include:
> HVAC and Lighting Usage – Many tenants run HVAC systems beyond necessary operating hours, leading to avoidable energy waste.
> Plug Load Management – Office equipment, IT servers, and kitchen facilities can account for a large proportion of total energy use.
> Operational Schedules vs. Actual Usage – Buildings that fail to align their operational schedules with real occupancy patterns often consume unnecessary energy during non-peak hours.
By engaging tenants in active data-sharing, real-time monitoring, and educational initiatives, landlords can bridge the performance gap and ensure that whole-building efficiency is optimised—not just the base-building systems.
What This Means for the UK Market
> Tenant engagement is no longer optional. To meet future NABERS and net-zero requirements, landlords must actively involve occupiers in energy management.
> Data transparency is a key enabler. When tenants can see their own energy performance and compare it to benchmarks, they are more likely to take action.
> Sustainability initiatives need to be framed as a business advantage. Many tenants are more receptive to efficiency measures when they are linked to cost savings, operational improvements, and employee well-being rather than just environmental impact.
7. Proactive Fault Detection Prevents Performance Degradation
Why Continuous Monitoring is Critical for Long-Term Efficiency
One of the most important takeaways from the session was that even well-optimised buildings will lose efficiency over time without proactive fault detection and intervention. This is because equipment performance naturally degrades, operational changes affect energy demand, and small inefficiencies accumulate into major cost and carbon penalties.
Mark Caldwell highlighted that many buildings fail to sustain their initial efficiency gains because they rely on reactive maintenance strategies rather than continuous performance tracking.
> Most faults are not immediately obvious. Many inefficiencies—such as a poorly calibrated HVAC system or unnecessary overnight energy usage—can go unnoticed for months without a real-time detection system.
> Minor issues compound into major inefficiencies. If left unchecked, small operational drifts can lead to unnecessary energy waste and excessive equipment wear, driving up operational costs and carbon emissions.
> Traditional maintenance schedules are insufficient. Periodic servicing does not always catch real-time performance issues, meaning that equipment can run inefficiently between scheduled inspections.
Common Issues That Cause Energy Performance Drift
Mark shared insights into some of the most common problems that proactive monitoring helps identify:
- HVAC Systems Running Outside of Operating Hours
- One of the most frequent inefficiencies in commercial buildings is systems continuing to run when they’re not needed.
- This could be due to incorrect programming, outdated occupancy schedules, or overrides left in place.
- Without detection tools, this can go unnoticed, adding thousands of unnecessary kilowatt-hours to energy bills.
- Simultaneous Heating and Cooling Conflicts
- This happens when different parts of a building heat and cool at the same time due to misconfigured BMS controls.
- It is one of the most wasteful and costly inefficiencies in large commercial spaces.
- A fault detection system can flag these conflicts immediately, allowing facility teams to adjust settings before excessive energy is wasted.
- Setpoints Drifting from Optimised Levels
- Even small changes in temperature or airflow settings can lead to significant energy inefficiencies.
- In a manually managed system, these issues often remain unnoticed until an energy audit is performed.
- Continuous monitoring ensures that optimal setpoints are maintained over time.
- Equipment Malfunctions or Suboptimal Performance
- When chillers, boilers, or ventilation systems degrade, their efficiency drops.
- Many issues are not severe enough to trigger alarms but still significantly impact energy consumption.
- Proactive monitoring allows engineers to address these inefficiencies before they escalate into costly failures.
The Shift from Reactive to Predictive Building Management
One of the key insights from the discussion was that many real estate owners and facility managers still operate in a reactive maintenance model. This means:
> Issues are only addressed when they become visible problems.
> Unnecessary energy waste occurs in the time between inspections.
> Equipment downtime is often longer because faults are only discovered after failure.
Mark emphasised that proactive fault detection is a game-changer because it allows predictive maintenance rather than reactive troubleshooting.
- Instead of waiting for problems to occur, faults are flagged in real-time, allowing early intervention.
- Asset managers gain full visibility into how building systems are performing every day, rather than relying on periodic inspections.
- Long-term energy efficiency is protected because minor inefficiencies are corrected before they impact overall performance.
The Financial and Environmental Benefits of Proactive Fault Detection
The discussion reinforced that fault detection isn’t just about operational efficiency—it directly impacts financial and sustainability goals.
> Lower Energy Bills – Fixing inefficiencies early prevents thousands of kilowatt-hours of unnecessary energy consumption.
> Reduced Carbon Emissions – Energy waste from undetected faults contributes to higher-than-necessary carbon footprints, making it harder for buildings to meet net-zero targets.
> Extended Equipment Life – Preventative maintenance reduces wear and tear, minimising the risk of costly breakdowns and replacements.
What This Means for the UK Market
> Regulatory compliance will require real-time performance tracking. As standards like NABERS and MEES become more stringent, landlords will need to demonstrate ongoing performance improvements, not just static compliance.
> Proactive building management will become a competitive advantage. Buildings that can prove continuous optimisation will be more attractive to tenants, investors, and sustainability-conscious stakeholders.
> Asset owners must rethink traditional maintenance models. The shift from scheduled servicing to real-time fault detection will become a defining trend in commercial real estate.
8. NABERS Provides a Learning Opportunity Beyond Just Ratings
Why NABERS is More Than Just a Certification
A major insight from the session was that the true value of NABERS goes beyond just achieving a high rating—it’s about the learning process that comes from assessing a building’s real-world energy performance.
Mark Caldwell shared how AshbyCapital engaged with the NABERS framework not just as a compliance tool but as a way to gain deeper insights into their buildings’ operational realities. Even without publicly disclosing ratings at the outset, the assessment process itself provided critical lessons that helped improve their overall energy strategy.
Many landlords, particularly in the UK, hesitate to undertake NABERS ratings because they are concerned about potential low scores. However, Mark emphasised that:
> Going through NABERS is valuable even if a building does not immediately achieve a high rating.
> The assessment process identifies critical inefficiencies that may have been previously overlooked.
> NABERS provides a structured methodology to benchmark and improve, rather than just measure and report.
The Key Learnings That Come from NABERS Assessments
During the discussion, Mark highlighted several important lessons that came from applying the NABERS framework to AshbyCapital’s buildings. Some of the most impactful insights included:
- Buildings Were Performing Differently Than Expected
- Before undertaking NABERS, AshbyCapital had already implemented various energy efficiency initiatives. However, the rating process revealed that some buildings were not performing as well in practice as they appeared on paper.
- This highlighted the importance of measuring actual operational energy use, rather than just relying on design intent or energy models.
- Tenant Energy Use Was a Bigger Factor Than Initially Realised
- As discussed in Point 6, landlords often focus on base-building efficiency, but NABERS assessments made it clear that tenant-controlled energy consumption had a greater impact than previously thought.
- The process reinforced the need for closer collaboration with occupiers to drive whole-building efficiency improvements.
- Even Small Adjustments Can Have a Big Impact on NABERS Ratings
- Mark pointed out that minor operational changes, such as adjusting HVAC schedules or improving plug-load management, made a measurable difference in energy efficiency.
- This was a crucial takeaway because it meant that incremental improvements could significantly enhance NABERS performance without requiring major capital investments.
- Data Accuracy and Granularity Matter
- NABERS requires detailed, metered energy data, and through the assessment process, AshbyCapital discovered gaps in their existing data collection systems.
- This led to improvements in how energy data was recorded, analysed, and used for decision-making.
The NABERS Process as a Strategic Tool for Continuous Improvement
One of the most important messages from the discussion was that NABERS should be seen as a continuous improvement tool rather than just a compliance mechanism.
> It provides a clear roadmap for ongoing efficiency gains. The methodology helps asset managers identify and prioritise improvements in a structured way.
> It allows for benchmarking against similar buildings. By comparing performance to peers, landlords can see where they stand and where they need to improve.
> It helps shift the industry away from ‘design-for-compliance’ toward ‘performance-driven operations’. Rather than focusing on energy models that often don’t reflect actual performance, NABERS forces a shift toward real, measurable efficiency outcomes.
Why NABERS is Particularly Important for the UK Market
The UK’s transition toward performance-based building ratings is still relatively new compared to Australia, where NABERS has been well-established for decades.
> Early adopters will be ahead of future regulatory requirements. As NABERS continues to gain traction in the UK, buildings that have already undergone assessments will be better positioned to meet evolving compliance standards.
> It provides a competitive edge in tenant and investor decisions. More corporate occupiers are now looking for verified, high-performing buildings, and NABERS helps landlords prove that their assets meet these expectations.
> The financial benefits go beyond just energy savings. Buildings with strong NABERS ratings tend to see higher asset valuations, improved leasing potential, and lower long-term operational risks.
Key Takeaways from the Discussion
> NABERS is not just a label—it’s a learning process that reveals hidden inefficiencies. Even if a building does not initially achieve a high rating, the insights gained are invaluable for long-term improvements.
> Landlords should see NABERS as a strategic tool rather than just a compliance exercise. The methodology helps asset managers make data-driven decisions that lead to continuous energy performance enhancements.
> Adopting NABERS early will help UK landlords stay ahead of regulatory changes and market expectations. Buildings that engage in NABERS now will be better positioned when future standards tighten.
9. Higher NABERS Ratings Correlate with Greater Financial Returns
Why Energy Performance Directly Impacts Asset Value
A key insight from the session was that NABERS ratings are not just about sustainability—they are directly linked to financial returns. Mark Caldwell shared that, from an asset management perspective, buildings with higher NABERS ratings consistently outperform lower-rated buildings in terms of leasing demand, rental premiums, and asset value retention.
The market has shifted from seeing energy efficiency as a compliance requirement to viewing it as a key driver of financial performance. Institutional investors, tenants, and property owners are now using verified building performance data—such as NABERS ratings—to differentiate high-value buildings from underperforming assets.
> A strong NABERS rating signals lower operational costs and better efficiency, making a building more attractive to tenants.
> Investors are increasingly prioritising buildings with verifiable energy performance, and NABERS provides a trusted benchmark.
> Regulatory pressures mean that low-performing buildings could face value depreciation, while well-rated properties will remain resilient in the market.
The NABERS Rating Premium: How It Affects Leasing and Rental Values
One of the most important financial insights discussed in the session was that higher NABERS ratings are strongly correlated with higher rental values and lower vacancy rates. While NABERS UK is still maturing, the Australian market has provided clear evidence that higher-rated buildings achieve financial benefits.
- Buildings with higher NABERS ratings tend to command rental premiums of 8-10% compared to lower-rated properties.
- Vacancy rates are lower in buildings with strong NABERS ratings, as tenants increasingly seek energy-efficient office spaces.
- Green finance opportunities, such as lower-interest loans and sustainability-linked funding, are more accessible to high-performing buildings.
Mark pointed out that AshbyCapital has already seen a shift in tenant expectations, where occupiers are beginning to ask more detailed questions about operational efficiency, energy use, and performance-based ratings rather than just building design credentials. This shift reflects a broader market trend where performance is replacing perception in real estate decision-making.
Why Tenants Are Prioritising NABERS-Rated Buildings
The session highlighted that corporate tenants—especially large organisations with their own net-zero commitments—are now prioritising buildings that can provide operational energy transparency. NABERS-rated buildings appeal to tenants for several key reasons:
> Lower operating costs. Verified energy efficiency translates into reduced energy bills, making NABERS-rated spaces financially attractive.
> Alignment with corporate ESG targets. Tenants increasingly need to report their own environmental impact, and leasing a NABERS-rated building helps them meet sustainability goals.
> Improved indoor environmental quality. Many NABERS-rated buildings optimise HVAC efficiency, leading to better air quality, thermal comfort, and overall workplace experience.
The Risk of Low-Performing Buildings Losing Value
While high NABERS ratings correlate with better financial performance, the discussion also highlighted the risks facing low-rated buildings. As more financial institutions integrate performance-based sustainability metrics into their lending and investment decisions, buildings with poor energy performance will become increasingly difficult to lease, refinance, or sell at competitive valuations.
Some of the major financial risks associated with poor energy performance include:
> Higher vacancy rates. As tenants look for verified, energy-efficient spaces, low-performing buildings will struggle to attract occupiers.
> Weaker asset valuations. Investors are now factoring in operational energy performance, meaning poor NABERS ratings could lead to asset devaluation.
> Regulatory and compliance risks. With tightening Minimum Energy Efficiency Standards (MEES) and future NABERS mandates, buildings that fail to improve performance may face legal leasing restrictions or fines.
How NABERS is Becoming a Competitive Advantage in the UK
Although NABERS UK is still in its early stages, Mark noted that forward-thinking asset owners are already using NABERS ratings as a key differentiator in the market. The financial and operational benefits of a strong rating are becoming clear, positioning NABERS as an important benchmark for UK commercial real estate in the years ahead.
> Higher NABERS ratings drive better financial outcomes through rental premiums, lower vacancies, and increased asset resilience.
> Occupiers are increasingly looking for performance-based energy transparency, making NABERS a critical decision-making factor in leasing.
> Low-rated buildings risk declining value as investors, tenants, and regulators prioritise verified operational efficiency.
10. Future-Proofing Through Data-Driven Decision Making
The Industry Shift Towards Data-Driven Asset Management
The final major theme from the session was that commercial real estate is moving away from static compliance-based energy tracking and towards dynamic, data-driven asset management. Mark Caldwell highlighted how this shift is fundamental to the long-term success of both property owners and occupiers, as buildings must continuously improve efficiency, adapt to new regulations, and remain competitive in an evolving market.
Gone are the days when sustainability was seen as just a compliance exercise—investors, landlords, and tenants are now demanding real-time, performance-based energy management. The ability to collect, analyse, and act on data is now a strategic advantage, helping landlords:
> Optimise operational performance in real time.
> Identify and mitigate inefficiencies before they impact costs.
> Ensure compliance with evolving sustainability regulations.
> Attract tenants who prioritise energy transparency and efficiency.
The Problem with Traditional Approaches to Building Management
Historically, many buildings have been managed reactively, with asset owners relying on:
- Annual energy audits that only provide a snapshot of performance.
- Basic BMS (Building Management System) settings that are often outdated or poorly optimised.
- Energy efficiency measures that lack ongoing verification, leading to performance drift over time.
This approach leaves landlords vulnerable to rising operational costs, regulatory penalties, and reduced asset value. Without real-time energy intelligence, small inefficiencies can go undetected for months or even years, accumulating into major financial and carbon waste.
How Data-Driven Decision Making Future-Proofs Buildings
The discussion made it clear that long-term building performance must be actively managed, not just periodically reviewed. By adopting real-time analytics and automated fault detection, asset owners can:
> Move from reactive to predictive maintenance. Instead of waiting for equipment to fail or performance to drop, issues can be detected and resolved before they escalate.
> Track performance continuously. With live data streams, landlords gain full visibility into how buildings are operating day to day, season to season.
> Optimise sustainability strategies dynamically. Instead of relying on static energy models, buildings can adapt to real-world conditions, occupancy changes, and tenant needs.
Regulations and Investor Pressure Are Driving This Change
Mark highlighted that this shift towards real-time energy intelligence isn’t just about efficiency—it’s becoming a market expectation. Several factors are forcing the transition from static to dynamic energy management:
> NABERS and MEES Compliance – As NABERS adoption grows and Minimum Energy Efficiency Standards (MEES) become stricter, landlords will need to demonstrate continuous performance improvements, not just one-time upgrades.
> GRESB and Institutional Investment Criteria – Investors are increasingly using GRESB, NABERS, and CRREM assessments to evaluate asset performance. Buildings that fail to integrate real-time data tracking may struggle to secure funding or refinancing.
>Tenant Demand for Verified Efficiency – More tenants are requesting transparency into energy performance before signing leases, meaning that buildings without data-backed efficiency proof will become less desirable.
The Competitive Advantage of Data-Driven Buildings
The key takeaway from the session was that data-driven decision making is no longer just a nice-to-have—it’s a requirement for future-proofing commercial assets. Buildings that actively monitor, analyse, and improve performance will:
> Retain higher asset value and remain attractive to investors.
> Meet evolving sustainability regulations without last-minute retrofits.
> Provide a better tenant experience through optimised indoor environments.
> Reduce operational costs and carbon footprints through real-time efficiency improvements.
What This Means for the UK Market
> The transition to dynamic, real-time energy management is already happening. NABERS and other frameworks are pushing the industry away from static reporting toward ongoing performance tracking.
> Landlords who fail to integrate real-time energy intelligence risk financial and regulatory consequences. The shift toward measured performance data means that buildings without proper analytics will fall behind in valuation and leasing potential.
> Early adopters of data-driven decision-making will be best positioned for long-term success. Those who invest in analytics and predictive energy management today will be well ahead of future compliance requirements and tenant expectations.
Final Takeaway from the UK Masterclass Session
The commercial real estate industry is undergoing a fundamental shift, where measured, verifiable building performance will define asset value, leasing potential, and long-term financial resilience.
> The old model of reactive energy management is no longer viable.
> Data-driven decision-making is the future of asset optimisation.
> Landlords and investors must embrace real-time performance tracking to stay competitive.
Bueno’s Perspective: The Future of Performance-Based Building Management
While much of the UK Masterclass focused on real-world applications and industry challenges, Hugh Amoyal’s introduction set the stage for why this shift toward data-driven decarbonisation and performance benchmarking is happening now. His insights provided global context, reinforcing that the UK is at a crucial moment in its sustainability journey, with NABERS and real-time energy analytics playing a central role.
The Shift Toward Performance-Based Building Management
Hugh emphasised that the industry is transitioning from passive energy tracking to active energy management. For years, building performance has been measured based on design intent, theoretical efficiency models, or annual energy audits. But the reality is that static assessments do not drive real efficiency improvements.
- Buildings are complex, dynamic systems, and their energy performance is affected by everything from occupant behaviour to equipment degradation and external weather conditions.
- Performance must be continuously monitored, not just reported once a year, for real efficiency gains to be made.
- Data-driven decision-making ensures that performance improvements are sustained, rather than being lost over time due to operational drift.
This is why landlords, investors, and facility managers must now think beyond compliance and start treating energy performance as a strategic asset—one that requires constant optimisation, not just one-off interventions.
Lessons from Australia’s NABERS Journey
The UK real estate industry is still in the early stages of adopting performance-based energy tracking, but the Australian market provides a proven model for how NABERS can transform building efficiency. Hugh highlighted some key takeaways from NABERS Australia’s success:
> A clear ratings framework drives market transformation. In Australia, high NABERS ratings are now expected in premium office spaces, with low-rated buildings struggling to attract tenants.
> Performance benchmarking creates accountability. The ability to compare one building’s performance against its peers has encouraged landlords to invest in efficiency improvements.
> Investor demand for NABERS-rated buildings has grown exponentially. In Australia, many institutional investors will not even consider a building without a strong NABERS rating—a trend that is now emerging in the UK.
By understanding how NABERS helped reshape the Australian commercial property sector, UK landlords can get ahead of the curve rather than playing catch-up when performance benchmarking becomes a widespread industry requirement.
Energy Debt and the Cost of Inaction
One of Hugh’s most compelling points was about Energy Debt—the hidden inefficiency that accumulates over time when buildings are not actively optimised.
- Every year that a building operates inefficiently, it loses financial and environmental value.
- Without data-driven analytics, many inefficiencies remain undetected, leading to excessive energy consumption and rising operational costs.
- Buildings that fail to act today will face higher retrofit costs, lower NABERS ratings, and decreased asset valuations in the future.
Hugh’s message was clear: inaction is no longer an option. With rising regulatory pressures, investor expectations, and energy costs, landlords and asset managers who delay adopting performance-based building management will see their assets lose value faster than ever before.
UK Masterclass Summary: Bringing It All Together
This UK Masterclass provided a roadmap for the future of commercial real estate sustainability. Through discussions led by Mark Caldwell and Hugh Amoyal, the session revealed the major shifts happening in the industry and why data-driven decarbonisation is now a business imperative, not just an environmental goal.
Key Takeaways from the Event
- Building analytics is now essential – AshbyCapital’s experience reinforced that traditional approaches to energy management are no longer sufficient.
- NABERS and CRREM provide a framework for action – Performance benchmarking isn’t just about ratings; it’s about learning, improving, and protecting asset value.
- Tenant engagement is a critical piece of the puzzle – Without occupier buy-in, whole-building efficiency improvements will remain out of reach.
- Proactive fault detection is key to sustaining efficiency gains – Energy drift and equipment inefficiencies will always occur, but real-time monitoring ensures they are corrected before they become costly problems.
- NABERS adoption is not just about compliance—it’s about financial and competitive advantage – Buildings with strong performance ratings attract higher rents, lower vacancies, and greater investor confidence.
- The future of real estate is performance-based – With regulations tightening, tenant expectations shifting, and energy costs rising, the industry must move from passive energy tracking to active energy optimisation.
This session made one thing clear: the transition toward performance-based building management is already underway. Asset owners and landlords who act now will be well-positioned to lead in a market where real-time performance tracking and NABERS benchmarking become the industry norm.
Final Thought: What Comes Next?
With NABERS UK gaining momentum, the conversation is shifting from ‘Should we track energy performance?’ to ‘How fast can we implement it?’
> Early adopters will benefit the most. Those who start integrating NABERS and data-driven decision-making today will be ahead of future regulatory and market pressures.
> Operational efficiency is now a financial strategy. Building optimisation is no longer just about sustainability—it’s a core component of asset value retention and risk management.
> The UK market is at a turning point. With more investors, tenants, and regulators prioritising verifiable energy performance, landlords who fail to act will find themselves at a disadvantage in the coming years.
The UK Masterclass provided valuable insights into the challenges and opportunities ahead, equipping attendees with the knowledge they need to navigate the next phase of commercial real estate sustainability.
