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Most U.K. Retail Properties Will Become Obsolete Under Net Zero

  • Less than 20% of stores and malls meet new government target
  • Large chunk could struggle to find tenants by as soon as 2023
A shopper packs a bag outside retail stores in London, U.K.

A shopper packs a bag outside retail stores in London, U.K.

Photographer: Jason Alden/Bloomberg

Landlords of most of the U.K.’s stores and shopping malls may struggle to find tenants by the end of this decade as the properties don’t meet the minimum energy standards of the government’s net-zero strategy.

That’s the finding of a new report from property broker Savills Plc, which estimates that 1.4 billion square feet (130 million square meters) of retail space -- or 83% of all current stock -- will need to be improved by 2030 to comply with proposals that are expected to become law by then.