In the dynamic landscape of UK commercial real estate, effective technical asset management is the cornerstone of success. However, even seasoned professionals can fall victim to common pitfalls that undermine portfolio performance. At Resero, we've identified five key areas where mistakes frequently occur: Regulatory Compliance, Risk Management, Decarbonisation, Strategy, and Operational Efficiency. Let's explore these areas and discuss how to avoid potential missteps. 1. REGULATORY COMPLIANCE MISTAKES The UK's regulatory landscape is constantly evolving, particularly in the wake of Brexit and increasing focus on building safety. Common mistakes include: Overlooking changing regulations: Many asset/building managers fail to stay abreast of new legislation, such as the SFG20 compliance standards, the Building Safety Act 2022, and risks associated with the trajectory for the Minimum Energy Efficiency Standards (MEES). Failing to maintain proper documentation: Incomplete or disorganised records can lead to compliance issues and potential fines. How to avoid: Implement a robust compliance management system, conduct regular audits, and consider appointing a dedicated compliance officer. Stay informed through industry bodies like the British Property Federation and RICS. 2. risk management oversights In an uncertain economic climate, risk management is more crucial than ever. Typical errors include: Underestimating potential threats: Failing to account for risks such as market volatility, interest rate changes, or unforeseen events like the COVID-19 pandemic. Lack of comprehensive risk assessment: Focusing solely on financial risks while neglecting operational or reputational risks. How to avoid: Conduct regular, comprehensive risk assessments. Develop scenario planning exercises and implement robust risk management strategies that cover all aspects of your portfolio. 3. DECARBONISATION PITFALLS With the UK government's commitment to net-zero emissions by 2050, decarbonisation is no longer optional. Common mistakes include: Ignoring sustainability/net zero trends: Failing to recognise the growing importance of Environmental, Social and Governance (ESG) criteria to investors and tenants. Short-term thinking in energy efficiency: Opting for quick fixes rather than long-term sustainable solutions. How to avoid: Set clear sustainability goals aligned with the UK's net-zero target. Invest in green technologies and conduct regular energy audits. Consider certifications like BREEAM to demonstrate your commitment to sustainability. 4. STRATEGIC MISSTEPS A well-defined strategy is essential for long-term success. Frequent errors include: Lack of clear long-term vision: Focusing on short-term gains at the expense of long-term value creation. Failure to align technical asset management with business objectives: Operating in silos rather than integrating technical asset management with overall business strategy. How to avoid: Develop a comprehensive technical asset management strategy that aligns with your organisation's goals. Conduct regular strategy reviews and ensure stakeholder engagement across all levels of your organisation. 5. OPERATIONAL EFFICIENCY BLUNDERS In the competitive UK market, operational efficiency can make or break your portfolio's performance. Common mistakes include: Neglecting preventative maintenance: Reactive approaches to maintenance often lead to higher costs and disruptions. Resistance to new technologies: Failing to adopt PropTech solutions that could streamline operations and improve tenant experience. How to avoid: Implement predictive maintenance programmes, embrace innovative PropTech solutions, and focus on continuous process improvement. Consider tools like smart building systems to enhance operational efficiency.

At Resero, we believe in the power of fostering new talent and perspectives within our industry. Our "grow-our-own" approach is designed to bring in fresh ideas and innovative solutions by nurturing young professionals. By providing them with the right tools, training, and opportunities, we aim to create a dynamic and forward-thinking workforce capable of tackling the challenges of sustainable energy and building design. Energy Engineer, Georgia Tierney guides us through her experience joining Resero straight out of University: From Work Placement to Energy Engineer: Georgia’s Story My journey with Resero began in 2022, sparked by a lecture given by Non-Executive Director , Andrew Cooper that aligned perfectly with my postgraduate dissertation. After reaching out to Andrew with a list of questions, what started as a simple enquiry quickly transformed into a work placement opportunity. During my first few weeks at Resero, I immersed myself in learning how to use software to create digital twins, build models, and understand the practical applications of the recommendations made towards asset improvement. It was during this time that I was put through the One-Click LCA Summer School to help me gain first-hand experience in crafting a Life Cycle Assessment (LCA). The hands-on experience was invaluable, and within three months, I was thrilled to receive an offer for a full-time position to join the Net Zero Carbon (NZC) Design team as a Junior Energy Engineer, to begin as soon as I completed my master’s degree in Medical Radiation Physics. Since joining the team permanently, my learning and development has continued at a rapid pace. Some of the key training programs and courses I’ve completed include:

By their very nature ‘fugitive’ emissions can, at best, only be estimated during the design stage of an embodied carbon report, often called a Life Cycle Assessment (LCA). A LCA is a method of evaluating the environmental burden of processes and products during their life cycle from cradle to grave . Post installation record keeping of fugitive emissions can inform subsequent reviews, and reporting. Giving exaggerated importance to estimated fugitive emissions may compromise the selection of air conditioning equipment that is demonstrably more suitable for the application, and in many cases more energy efficient than the alternatives. What are fugitive emissions? Fugitive emissions refer to the gases or vapours that are released from pressurised equipment due to leaks, evaporation, or other unintended or irregular releases. In the context of refrigerant gas within air conditioning systems, fugitive emissions refer to the leakage of refrigerant gases into the atmosphere. Refrigerant gases are commonly used in air conditioning/heat pump systems as part of the mechanical cooling/heating cycle. Refrigerant gases may escape from the system due to various reasons such as equipment failure, poor installation, neglect during maintenance, and as part of final decommissioning. Fugitive emissions are rightly a concern, many refrigerants are potent greenhouse gases. For example, commonly used refrigerants like hydrofluorocarbons (HFCs) have a much higher global warming potential than carbon dioxide. Even small amounts can contribute significantly to global warming. How does the sector mitigate against fugitive emissions? It is not only good practice to mitigate against fugitive emissions refrigerant handling is also covered by several UK regulations and standards: The Fluorinated Greenhouse Gases Regulations 2015: This regulation implements the EU F-Gas Regulation in the UK, which aims to reduce emissions of fluorinated greenhouse gases (F-gases), including HFCs used as refrigerants. It requires companies that produce, supply, use, install, service, maintain or dispose of equipment containing F-gases to hold a company certificate issued by an approved certification body. Individuals carrying out these activities must also hold a qualification recognised by the Environment Agency. The Ozone-Depleting Substances Regulations 2015: This regulation implements the EU ODS Regulation in the UK, which aims to protect the ozone layer by controlling the production, supply, import, export, ownership, and use of ozone-depleting substances (ODS), including certain refrigerants. It requires companies that carry out these activities to hold a company certificate issued by an approved certification body. The Health and Safety at Work Act 1974: This act requires employers to ensure the health and safety of their employees and others who may be affected by their activities. This includes ensuring that refrigerants are handled safely. The Control of Substances Hazardous to Health Regulations 2002 (COSHH) : These regulations require employers to assess the risks from hazardous substances, including refrigerants, and take appropriate measures to prevent or control exposure. British Standard BS EN 378: This standard specifies safety and environmental requirements in relation to the design, manufacture, installation, operation, maintenance and disposal of refrigerating systems and heat pumps. F-Gas Certification: Technicians who install, maintain or service stationary refrigeration equipment containing F-gases must hold a valid F-gas certificate issued by an approved certification body. Waste Management: The Environmental Protection Act 1990 and the Hazardous Waste Regulations 2005 require businesses to ensure that waste refrigerants are disposed of safely and responsibly. The legislation above illustrates that prevention of fugitive emissions is something that the industry is focused on and that the loss of refrigerant, other than through exceptional circumstances, is entirely preventable. Failure to comply with the applicable regulations can result in significant fines for responsible parties (beyond engineers and contractors). Therefore, it's crucial for landlords and building managers to ensure that the handling of refrigerants is done responsibly and in accordance with the law. The importance of Technical Asset Management in this regard should not be underestimated, site auditing is key to responsible building management, read more here . Including fugitive emissions within LCA reporting LCAs assess the environmental performance of a building and the outputs have numerous environmental indicators but are often collectively referred to as the amount of Carbon Dioxide equivalent (CO2e) emitted during the manufacture, transport, and construction of building materials, together with end-of-life emissions. BS EN 15978-1 provides a calculation methodology for the assessment of environmental performance of buildings. Whilst it is normal practice to include fugitive emissions within LCA reporting, it is also good practice that the reader is given guidance on their relevance, and importance, in understanding the buildings overall total environmental impact. Diligence should be taken to source manufacturers data, as an example, Daikin¹ recommend the following percentages for embedded carbon reporting: Refrigerant Recovery Efficiency = 99% Annual leakage rate = 2% of refrigerant charge Annual purge release factor = 0% Annual service release = 0% Probability factor for catastrophic failure = 0.001% This information confirms that: During refrigerant recovery, at end-of-life or because of repairs, gas lost is considered minimal and is associated with residual amounts (service engineers gauge lines). Industry studies show that correctly installed systems are not prone to refrigerant leaks. VRV systems do not require any purging of refrigerant, plus refrigerant purging is not permissible under UK and EU regulation. VRV leak checking as part of annual servicing can be done without ‘opening’ the refrigerant side of the system. Interestingly, Daikin Industries have carried out a study that shows that catastrophic failures on systems occur 1 in every 10,000 systems, there recommended 1 in every 1000 is a very conservative figure. In conclusion the reporting of fugitive emissions should be done with care, and reports should include explanatory notes. There are many factors when considering equipment selection, whilst embodied carbon is one of them it should form part of a holistic approach. A whole life carbon assessment (WLCA) standard can estimate the amount of carbon emitted throughout the life cycle of a constructed asset, from the early stages of development though to the end of life. It gives visibility to embodied carbon, operational carbon, and user carbon. Sources ¹ Daikin Pol01 BREEAM Calculation Default Values

The Technical Asset Management team at Resero oversees many areas, but at the heart of what we do is risk management. Our market-leading site audits are supported by tailored software that ensures consistent reporting whilst mitigating landlord risk. What is building statutory compliance in the UK?  Statutory compliance in non-domestic properties refers to the legal requirement for commercial buildings to adhere to certain laws, regulations, and standards. This is crucial in ensuring the safety, health, and welfare of the people who use these buildings and that the building complies with environmental regulations. Non-compliance can pose significant risks to insurance policies, the value of the property and of course the occupants’ health and wellbeing. The role of statutory compliance in non-domestic properties is multifaceted and includes the following:

If you're a tenant planning to make changes to your leasehold property, or a facilities manager of a multi-let property, it's crucial to understand the concept of License to Alter (LTA) and the importance of obtaining specialist M&E advice when approving tenant requests. In this technical guidance note, we delve into the significance of LTAs and why seeking specialist consultancy advice is paramount before proceeding with any alterations.  What is a License to Alter (LTA)? A License to Alter is an agreement between a tenant and a landlord granting permission for the tenant to carry out works on a leasehold property. It sets out the conditions under which the alterations may be carried out and ensures that no unexpected conflicts will arise as a result of the work. This agreement, held alongside the lease document, serves as a framework for future actions related to the property, including terminal schedules of dilapidations. Why is it important to seek specialist consultancy advice before approving an LTA? Facilities Managers play a pivotal role in ensuring tenants are accommodated while safeguarding the property's integrity. While it's essential to allow for and facilitate tenant alterations, it's equally important to mitigate any adverse impacts on other occupants, landlord services, and the property's Energy Performance Certificate (EPC) . Any works that involve electrical, or mechanical infrastructural changes should be approved through an LTA. The temptation might be to ‘save cost’ by reviewing the works without reference to an M&E specialist but the liability of risk will then fall upon the facilities management team if an issue arises later. Below we list some practical examples of why the LTA process requires an M&E consultant’s review.