How does an energy label affect the rental price of commercial space?

Justus Hayes - Research · 11 Aug 2026

An energy label affects the rental price of retail space indirectly but noticeably. Landlords of well-insulated properties with a high energy label typically charge a higher base rent, while tenants in return pay lower energy costs. For commercial real estate, there is also a statutory minimum requirement that is becoming increasingly strict, meaning a poor energy label also carries legal and financial risks. This article answers the most frequently asked questions about energy labels and the rental price of retail space.

Which energy label is mandatory for retail space?

Since 1 January 2023, a statutory minimum requirement of energy label C has applied to office buildings in the Netherlands. A similar obligation is being prepared for retail space and other commercial real estate, but as of 2026, there is no hard statutory minimum specifically for retail properties. However, landlords and owners are required to be able to provide a valid energy label when letting.

The absence of an energy label when letting is not permitted. Owners who cannot show a valid label risk a fine from the government. For tenants, the energy label is therefore not only an indicator of sustainability, but also a document they are entitled to before signing a lease. It is expected that legislation for commercial real estate, including retail space, will be further tightened in the coming years towards a minimum of label C or higher. Those who now rent retail space with a low label may later be confronted with a landlord who carries out forced renovations, with all the consequences for operations.

How does a landlord calculate the rental price based on the energy label?

Landlords do not use the energy label as a direct calculation formula for the rental price, but the label influences the market value of the property and thereby indirectly the asking rent. A property with energy label A or B attracts more prospective tenants, has lower service costs, and scores better with institutional investors, which strengthens the landlord’s negotiating position.

In practice, landlords incorporate the quality of the property, including energy performance, into the total rental price per square metre. A well-insulated retail space with efficient installations justifies a higher base rent, because the total occupancy costs for the tenant are on balance comparable or lower than for a cheaper space with high energy costs. Investors and landlords who are making their property portfolios more sustainable also actively use this argument in rental negotiations. When guiding tenants in retail space, KroesePaternotte always assesses whether an asking rent is in line with the market, including in relation to the energy performance of the property.

What is the difference between energy label A and energy label C for tenants?

The difference between energy label A and energy label C translates for tenants of retail space primarily into energy costs and comfort. A property with label A has better insulation, more efficient climate systems, and lower heating costs, while a property with label C consumes more energy and incurs higher operating costs.

Concretely, the difference in energy costs per year can amount to thousands of euros, depending on the surface area and the use of the space. For a shop of 150 square metres in a busy shopping street, that is a significant amount that directly affects the profit margin. In addition, a label A property generally offers a more pleasant retail environment, which is relevant for both employees and customers. From an investor’s perspective, label A properties are also considered less risky, meaning they are less likely to sit vacant and are more often chosen by high-quality tenants.

Can a tenant negotiate the rental price due to a poor energy label?

Yes, a tenant can and may negotiate the rental price if the energy label of the retail space is low. A poor label is an objectively demonstrable quality deficiency of the property that causes higher operating costs. This is a legitimate argument in rental negotiations, especially when the asking rent is not proportionate to the total occupancy costs.

In practice, many tenants are reluctant to use this argument because they do not know the market value of the space or because they are afraid of alienating the landlord. Yet it is a real negotiating point. A landlord who knows that the property is energetically substandard will be more willing to accept a lower base rent or to make agreements about sustainability improvements. It is essential to compare the rental price with market-conforming prices for comparable locations. KroesePaternotte holds lease contract data going back to 1984 and therefore has the most extensive reference base in the Dutch retail market, giving tenants a strong position in these types of negotiations. See how guidance in rental negotiations works.

What additional costs does a low energy label entail?

A low energy label for retail space brings three categories of additional costs: higher energy bills, higher service costs, and potential future adaptation costs if legislation tightens. Together, these costs can completely negate the financial attractiveness of an apparently cheap rental price.

Higher energy bills: Poor insulation and outdated installations directly lead to higher gas and electricity costs, which are entirely at the tenant’s expense.
Higher service costs: In shopping centres, costs for collective climate systems are often distributed via service charges. A property with a low label contributes more to the total energy consumption of the complex.
Renovation risk: If legislation for commercial real estate is tightened, the landlord may be forced to renovate. Depending on the lease contract provisions, this can lead to temporary closure, disruption, or even a rent increase after sustainability improvements.
Reputational risk: For brands with a sustainability agenda, retail space with a low energy label can also create a communications problem with customers and stakeholders.

It is wise to always calculate the total occupancy costs when assessing a rental offer, not just the base rent. An overview of available retail spaces provides insight into the supply, but assessing the actual cost price requires market knowledge.

How do you check the energy label of a retail space before signing?

You can check the energy label of a retail space via the official register at ep-online.nl, the national database of registered energy labels for buildings in the Netherlands. Enter the address of the property and you can immediately see whether a valid label has been registered, what the label class is, and when the label expires.

Pay attention to the following points when checking:

Validity: An energy label for commercial real estate is valid for ten years. Check that the label has not expired, as an expired label no longer counts legally.
Applicability: Ensure that the label relates to the specific part of the building you are renting, not to another section or an older version of the property.
Correspondence with reality: A label says something about the theoretical energy performance of the building. If in doubt, ask for the underlying calculation or the report from the certified advisor who issued the label.
Contractual recording: Have the lease contract state which energy label applies at the time the lease commences. This protects you if the landlord later makes changes that affect the energy performance.

Anyone who is uncertain about the interpretation of the energy label or its consequences for the rental price would be wise to engage a specialist retail agent. KroesePaternotte advises retailers and entrepreneurs daily on assessing lease contract terms and rental prices, including the energy quality of the property. Contact us for a no-obligation conversation about your search for the right retail space.

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