Kingspan – Insulation: Do you really get what you pay for?

Posted on: 23rd July 2018 by CCF

Insulation: Do you really get what you pay for?
That question is right at the heart of this blog post which will take an in depth look at a major research study which looks specifically at the impact of using a premium performance wall insulation solution in commercial properties, compared to a cheaper and poorer performing insulation. As you might expect, the cheaper insulation resulted in walls which were up to 80 mm thicker. The real question however, is how much floor space can actually be unlocked by opting for a premium solution, and perhaps more importantly, what is the real value of this space?
To find out, a database of over 7,000 modelled properties was used with four commonly used wall constructions. The model considers a wide range of factors to calculate Return on Investment (ROI) on the cost of insulation, including location, design, rental income and construction cost. The results are remarkable:

- In 92% of the buildings analysed, the premium insulation product delivered a positive ROI

- In 40% of the buildings this ROI ranged between 300% and a staggering 1000%.

- A further 18% of the buildings examined exceeded 1000%.  

London: Can Added Space Seal a Sale?

Commercial construction is right back on track in the Capital with the volume of new-start office developments hitting its second highest level in 20 years. As part of this trend, maximising useable space is becoming an increasingly crucial factor in sealing letting deals, as a Deloitte London Business Footprint Report shows:

- Almost all letting deals for schemes under construction involve businesses taking on extra space for expansion.

- The most significant increases in letting deals were for large sized areas, with a 120% rise in deals over 100,000+ sq.ft in 2013, and continued year on year rises ever since.

With this in mind, can premium performance insulation help to achieve a significant difference in space in these properties to improve saleability as well as value?
The research investigated a 14 storey new build development in central London fitted out with a Cat-A specification at a cost of £63.45 million. As with a significant proportion of the properties which make up the 9.5 million sq.ft office pipeline for London, the steel frame building uses a ventilated rainscreen cladding system.
A comparison was made of two façade system build-ups. Both hybrid insulation build-ups examined use an internal layer of glass mineral fibre behind a layer of particle board, however by opting for premium performance insulation instead of an outer layer of rock mineral fibre, the high performance option provides a solution which is 55 mm slimmer.
When totalled out across the full 14 floors this helps squeeze an incredible 126.50 sq.m (1,361.63 sq.ft) of additional useable space from the building envelope, which may make all the difference in securing leasing deals.
Whilst the premium performance insulation increased costs by £10.00 per sq.m, the additional space has a capitalised value of £1,530,151.00, representing a 791% return on the cost of the insulation and rental income alone from the space stands at £70,119.00 per year.
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