4See Environmental and Zurich Insurance are warning commercial property owners that failure to address environmental and sustainability challenges are likely to see values fall and demand slacken.

Ruth Gilbody, Commercial Director of 4See Environmental, says: "This means that commercial property owners and investors who do not upgrade their buildings to meet and exceed these standards run the risk of ultimately eroding their asset base and its future potential.

"Tenants are already demanding that the buildings they rent have strong sustainability and environmental credentials. The challenge facing commercial property owners and investors, therefore, is to eradicate the potential negative impact of the changing regulatory framework and to do so in a way that is economically viable over the coming years."

It is expected that properties will need an Energy Performance Certificate rating of at least ‘E' to comply.

Current estimates supplied by the British Property Federation suggest that up to 20 per cent of commercial properties would not hit the required standard, meaning they would either have to be withdrawn from the market or upgraded to meet the legislation.