Tertiary Decree: your asset is worth 6.75M EUR less without a retrofit plan

02

the framework

The tertiary building stock subject to the decree represents 960 million sqm, or 30% of the French real estate stock. The 1,000 sqm threshold is assessed per land unit, not per premises: three 400 sqm retail units within the same real estate complex trigger the obligation. Data centers and technical premises fall under specific rules (Absolute Values III order, Official Journal of 24 November 2022).

Two trajectories structure your obligations. The relative method (Crelat) requires -40% in 2030, -50% in 2040 and -60% in 2050, compared to a reference year fixed over 12 consecutive months between 2010 and 2019. The absolute method (Cabs) sets a target value in kWh/sqm/year, defined by Absolute Values orders I to IV. The energy declaration must be submitted each year before 30 September, with documented climatic and volumetric adjustments.

The asset discount always precedes the fine. Penalties are capped at 7,500 EUR per legal entity and per building, supplemented by an official publication of breaches (article R.174-33 CCH). But the real financial risk lies elsewhere: in the Paris CBD and La Defense markets, assets rated F-G EPC suffer significant discounts at transaction, documented by several recent market studies. For a 5,000 sqm portfolio valued at 9,000 EUR/sqm, a 15% discount represents 6.75M EUR, far beyond the 7,500 EUR fine. On the portfolios we audit, the extra cost of inaction amounts each year to tens of thousands of euros in avoidable energy, excluding the discount.

03

your gains

2030 trajectory secured from year 1: three value levers

On delivered operations, Kytom observes significant reductions in consumption from the very first year after works, allowing a trajectory compliant with the 2030 objectives to be reached quickly. The return on investment of a package of 5 to 8 actions is generally between 4 and 7 years depending on the nature of the works and the building’s energy profile.

As an indication, a typical 850 sqm floor plate may require a retrofit CAPEX of around 35 to 55 EUR/sqm, generating significant energy savings from the first year. Standard operational calibration takes 12 weeks, from the audit to the first declaration.

Three levers structure the value for the Asset Manager and the CSR Director. First, market value: renovated buildings gain on average 1 to 2 EPC levels, exiting the discounted F-G segment and strengthening their rental appeal. Next, rent: assets aligned with the regulatory trajectory of reducing tertiary consumption attract tenants subject to CSRD, who now require enforceable green leases (article 8 of the EU taxonomy). Finally, investor reporting: documented regulatory compliance directly feeds the CSRD ESRS E1 and green taxonomy indicators required by PRI signatory LPs, with no parallel measurement system.

The 21-24 degC comfort temperature is maintained post-retrofit on the vast majority of delivered operations, checked by hygrothermal sensors 12 months after handover.

04

acknowledged limits

When tertiary regulation is not the right entry angle

Not all situations justify a full energy audit approach. We say so during scoping to avoid a disproportionate investment.

Below 800 sqm of cumulative tertiary floor area per land unit, the obligation is not triggered: a simplified energy audit such as a tertiary EPC is sufficient. There is no point mobilizing a standardized audit team on an asset that regulation does not require.

For an asset slated for demolition or major restructuring within 36 months, launching a retrofit plan degrades the ROI: energy performance is addressed directly in the program of the future operation, within the framework of the applicable new-build environmental regulation or a low-carbon label. This is more coherent and financially more efficient.

For a multi-site portfolio of more than 15 buildings or a mixed industrial asset (process + tertiary), the 12-week calibration is not sustainable. We switch to a phasing in clusters of 5 sites, over 20 to 28 weeks, with a dedicated team and portfolio management.

Conversely, for a single building under 1,500 sqm already equipped with an operable BMS, the audit phase is shortened to 4 weeks. The full method becomes oversized: we offer a streamlined format centered on the declaration and the action plan, with savings of 30 to 40% on audit fees.

05

Method

1. Regulatory scoping
   We identify the scope subject to the obligation per land unit, collect 3 years of energy bills, and choose the reference year (Kytom method: a documented median year rather than a high year, to secure the 2040-2050 milestones). Arbitration between the relative method (Crelat -40%/-50%/-60%) and the absolute method (Cabs in kWh/sqm/year). Duration 2 weeks.
2. Energy audit compliant with the applicable European standard.
   On-site measurement campaign, thermal modeling of the building, mapping of the 5 major items (heating, cooling, ventilation, lighting, office equipment). Identification of 15 to 25 retrofit actions with a quantified savings potential. Engineers. Duration 6 weeks.
3. energy declaration
   Entry of EFA data on the regulatory platform before 30 September, application of climatic adjustments and volumetric adjustments, quality control before validation. Documented compliance directly feeds CSRD ESRS E1 reporting. Duration 2 weeks.
4. Costed retrofit action plan
   Prioritization of actions according to a 5-10 year IRR: LED relamping, BMS, pipe insulation, free-cooling, sub-metering. Package of 5 to 8 actions for a median ROI of 6.2 years and -28% consumption from year 1. CAPEX 35 to 55 EUR/sqm. Duration 1 week.
5. Operational management
   Monthly consumption dashboard, annual pre-declaration energy review, adjustment of the action plan according to observed deviations. Comfort maintained at 21-24 degC verified by hygrothermal sensors. Commitment to the 2030 trajectory.