Research from the British Property Federation (BPF) found that 83% of commercial buildings in seven major cities of the UK have an Energy Performance Certificate (EPC) below B and risk becoming unleasable as new energy efficiency regulations are set to take effect by 2030. According to energy efficiency experts from Exergio, a company that develops AI-based tools for commercial buildings, a declining interest from tenants and investors will be visible in these buildings unless upgraded.

As the real estate sector is responsible for approximately 40% of global carbon emissions, stricter regulations are becoming the norm across Europe and beyond.

“The reality is that many commercial buildings are already stranded assets or properties that no longer meet market expectations due to their poor energy performance,” said Donatas Karčiauskas, CEO of Exergio. “Property owners who fail to act now will find their properties losing value, as demand shifts towards energy-efficient buildings.”

However, the issue of stranded assets extends far beyond the UK. Commercial real estate owners worldwide experience the financial impact of failing to meet energy efficiency expectations. In Europe, over 30% of commercial real estate assets are already stranded, and a further 20-40% are at risk in the next 3 years.

The situation is similar in the United States as well. According to projections from the Carbon Risk Real Estate Monitor, up to $9 trillion worth of commercial properties in the U.S. are expected to become stranded in the coming years.

In New York alone, only 4% of premium office buildings are projected to meet the more stringent 2030 standards at their current performance levels.

According to Karčiauskas, this discrepancy suggests that a substantial number of properties will require significant energy efficiency upgrades to avoid potential fines and maintain their marketability.

“Different regions have set separate goals to reach by 2030. While in the UK buildings have to reach at least a rating of B, in the U.S. emissions have to be halved. Collectively, if buildings don’t reach that, they will no longer remain attractive to buyers or tenants. Deep retrofits are often presented as a fix but they are costly, and we need quick fixes now. AI-powered solutions provide a faster, more affordable way to improve energy performance,” explained Karčiauskas.

AI-powered energy optimization platforms are changing how commercial buildings manage their energy consumption. These systems can analyze data in real-time and automatically adjust heating, ventilation, and lighting.

According to a recent Nature study, combined with existing measures, AI tools can help reduce energy waste by 40%. As a result, costs become smaller but not at the expense of tenant comfort.

“AI helps prevent costly repairs and energy waste by predicting maintenance needs. Machine learning models can detect inefficiencies before they escalate, something that would be really difficult for a person to do in a large building complex where thousands of sensors exist. With such tools, property owners can address issues proactively,” continued Karčiauskas.

HVAC systems are often considered the biggest energy consumers in commercial properties. AI-based tools work by, for example, fine-tuning temperature or airflow based on occupancy levels and external conditions and establishing efficiency without compromising indoor climate quality.

A recent example of AI-driven efficiency improvements comes from Exergio’s collaboration with Ozas Shopping and Entertainment Centre in Vilnius, Lithuania. By implementing AI-powered energy management solutions, Ozas reduced its energy consumption by 29% and saved around €1 million.

“The 2030 deadline is not far off. For landlords who want to protect their property value, investing in AI-driven energy optimization is one of the smartest moves they can make. The alternative is long, expensive deep renovations, or simply watching many assets lose relevance in an increasingly competitive market. It wouldn’t be a sustainable solution for anyone,” Karčiauskas concluded.