Retrofit or Rebuild? M&S and the battle to greenify retail property
Penned by my esteemed colleague Emma Barnstable, this week’s Retail Note focusses on M&S’ plans to redevelop its Marble Arch flagship store and the ESG hornets’ nest this has stirred up. In a nutshell: is it greener to retrofit or to rebuild? The outcome will have significant implications not just for M&S and retail generally, but potentially for all landlord developers.
08 July 2022
Key Messages
- M&S’ proposed redevelopment of Marble Arch store controversially called in by Michael Gove.
- M&S is proposing demolition and creation of mixed use space with a reduced retail footprint (146k sq ft).
- New site would have very green credentials (office and retail BREEAM ratings ‘Outstanding’ and ‘Excellent’ respectively).
- M&S aims to make it one of the top 10% green buildings in London.
- KF Research suggests it would be only one of three green rated stores on Oxford St.
- Campaigners and detractors made claims on environmental and heritage grounds.
- Demolition would supposedly release an equivalent of 40k tonnes of CO2 into the atmosphere.
- But there are no equivalent carbon comparisons proposed by campaigners for the refurbishment process and maintenance of an inefficient store.
- M&S maintains rebuild presented the most carbon efficient option over a longer time span.
- This has inevitably re-ignited the whole ‘retrofit versus rebuild’ debate.
- Potentially an easy opportunity for the government to re-assert its political stance on sustainable development policy.
- The outcome of M&S’ proposals will ultimately be assessed on the individual merits of the site.
- But it will also set key precedents in terms of policy and sentiment towards new build redevelopment.
- Potentially major ramifications for any re-development projects going forward.
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