CR21022 Research into Commercial Leases

Concepts

• research and development
• research into commercial leases
• swindon
• department for business, energy and industrial strategy
• market and economic research
• cr21022 research
• upcoming research opportunity
• research project
• overview of the research context
• research

Location

Description

This notice seeks to inform interested suppliers that the Department for Business, Energy and Industrial Strategy (BEIS) is planning to launch a tender for research into cost allocation between landlords and tenants for heating and energy efficiency measures in rented non-domestic buildings, namely 'commercial lease terms for heat and energy efficiency related costs.' The Department plans to hold a supplier engagement event before launching the invite to tender on Monday 15th February from 14:00-15:30 for this upcoming research opportunity. The purpose of this event will be to: • Provide suppliers with an overview of the research context and provide details on the proposed methodologies, timescales, and deliverables. • Give suppliers the opportunity to ask questions about the project and provide feedback on the research scope, including its deliverability within the desired timeframe. The supplier engagement event will be held via Microsoft Teams. If you would like to attend, please email research@uksbs.co.uk labelled "CR21022 Supplier Event Registration" by 17:00 Friday 12th February 2021 to receive an invite. This research project may attract, but is not limited to, those with expertise in property, real estate, commercial letting, heating and energy efficiency. Background context In England, the non-domestic building stock consists of approximately 1.6 million buildings both on and off the gas grid, of which around 60% are rented. The UK has committed to achieving net zero emissions by 2050. The department is considering how to decarbonise space heating and hot water generation and improve the energy efficiency of non-domestic buildings. Most non-domestic buildings on and off the gas grid currently have a fossil fuelled heating system in use for producing heating and hot water, contributing to carbon emissions. These buildings will need to transition to low carbon heating technologies and to assist this, will need to improve the fabric of the building and invest in other energy efficiency improvements. Due to the diverse nature of the non-domestic building stock, there is a need to build on our current evidence base to ensure upcoming policies reflect the cost allocation arrangements that are in place across the stock. This means we need to understand how costs for heating systems and energy efficiency improvements in rented non-domestic buildings in England are allocated between the tenant and landlord through reviewing commercial lease terms. This is for capital costs relating to energy efficiency measures, replacing a heating system when it reaches the end of its life and operating costs related to energy bills, maintaining a heating system and related improvements. Details on how we want the collected data to be presented will be shared at the engagement event.

CPV Codes

• 73200000 - Research and development consultancy services
• 79300000 - Market and economic research; polling and statistics

Indicators

• Contract is suitable for SMEs.

Other Information

We propose that this research project is carried out in two phases. This would include: Phase 1: Desk based research on the most common contractual arrangements in operation in the non-domestic sector by looking at model form contracts and drawing from commercial lease experts. Phase 2 (following review of phase 1): Primary research into bespoke commercial lease agreements with the aim of developing a representative view of the non-domestic building stock. We acknowledge that there may be other ways suppliers could meet the overall aims of this research project, and we actively encourage suppliers to bring forward suggestions for how the research objectives can be met.