How office refurbishments are unlocking potential and addressing the supply gap

In Birmingham, we led the refurbishment of The Chatwin Building, a Grade II-listed Victorian property formerly used as a bank. The project transformed the space into high-quality Grade A offices, integrating the building’s historic character with modern workplace design. This vibrant and functional workspace meets contemporary occupier needs while preserving and revitalising its heritage.

Mitigating the risk of stranded assets

One of the risks of not refurbishing older office buildings is the potential for stranded assets. If older office buildings are not upgraded to meet sustainability and modern design standards, they may become increasingly undesirable to potential occupiers, diminishing their long-term value and return on investment. Stranding occurs when a building can no longer be rented out due to failing to meet regulatory standards. The UK’s tightening EPC (Energy Performance Certificate) requirements is an example of this. Currently, commercial buildings require an EPC rating of E, but this will rise to C in 2027 and B by 2030^iv. Buildings not meeting these minimum requirements will become potentially unsaleable and unlettable.

A proactive approach is needed to prevent buildings from becoming stranded assets. One solution is to develop a phased upgrade strategy that allows building owners to align upgrades with available funds. Many property owners have already begun implementing such strategies to ensure compliance while enhancing long-term asset value.

Our team has developed the Retrofit Tooklit, which enables commercial property owners to review their assets in an informed and strategic way, ensuring they meeting future sustainability requirements and remain competitive in the market.

In Bristol, our refurbishment and fit-out of Origin transformed the space to deliver a modern, versatile and accessible co-working space for the local community. The 42,000 sq ft development has adaptable spaces to allow for start-ups through to larger businesses and caters for contemporary methods of working with hot desks, cellular offices and event spaces, meeting rooms, members lounge and dedicated desks.

Repurposing to unlock potential

Repurposing is playing a pivotal role in addressing the supply gap, offering a viable and sustainable alternative to new developments. By repurposing older or underperforming buildings from their previous use, landlords can unlock the potential of existing assets, transforming them into Grade A workplaces that meet the modern demands of occupiers.

Repurposing existing buildings provides a faster route to market compared to new developments, which can take longer due to planning delays, construction timelines, and rising material costs. Refurbished offices often command premium rents, particularly when they include modern amenities, high-quality finishes, and designs focused on employee wellbeing.

Located on the site of Leeds General Infirmary hospital, we will be leading a team to transform the Grade-II listed Old Medical School into a 75,000 sq ft health tech innovation hub. At the heart of the Innovation Arc, this sustainable retrofit solution will accommodate co-working spaces, meeting rooms, event areas, offices and laboratories.

The rise of secondary office hubs

With city centre office markets at capacity, secondary hubs are becoming attractive alternatives, offering high-quality spaces, strong connectivity, and cost efficiencies. However, one of the biggest challenges in these locations is rental values. While major cities outside London can achieve £50/ft², secondary locations typically see rents only up to half of this value. This discrepancy makes viability a key concern for developers and investors. The aspiration for high-quality office spaces in these areas remains strong, but to make these projects commercially feasible, innovative approaches are required. This could involve designing cost-effective refurbishments, optimising space efficiency, or securing external funding to bridge financial gaps and prevent projects from stalling.

Stockport and Wolverhampton are prime examples of secondary hubs that have benefitted from significant redevelopment projects. Both areas have introduced sizeable Grade A office developments adjacent to their West Coast Mainline train stations, offering businesses affordable and well-connected office spaces. Stockport has capitalised on its proximity to Manchester, providing businesses with excellent access to transport links and a more affordable rental market than the city centre. Similarly, Wolverhampton’s Interchange project, has provided modern, flexible office space with connectivity to Birmingham and beyond.

These secondary hubs are part of a broader trend in the office market, where businesses are prioritising flexibility, accessibility, and employee wellbeing. The shift towards hybrid working models has only accelerated this trend, with businesses increasingly looking for office spaces that offer better access to transport links, reduced commute times, whilst providing a healthier work-life balance for employees.

We were appointed by the University of Huddersfield to repurpose a Grade-II listed, former warehouse built between 1774 and 1780. The warehouse had previously been converted into twelve flats by a residential developer. The University sought to convert the building into office accommodation for university departments. Working with the Estates Department and International and Careers Departments, we devised the space planning and interior design ensuring it fulfilled everyone’s needs whilst respecting the heritage of the building.

Future-proofing the office market

The future of commercial real estate and the office market lies in a combination of refurbishment and decentralisation. By upgrading existing buildings and creating regional office hubs, the office market can meet the evolving needs of businesses and employees while supporting net zero goals. Refurbishment offers a sustainable, cost-effective solution to the supply gap, enabling landlords to provide high-quality office space without the need for new land acquisition and construction.

Regional office hubs, meanwhile, are providing businesses with the opportunity to access high-quality office spaces outside of traditional city centres. These hubs are alleviating the pressure on city centre markets and helping to distribute economic activity more evenly across the country. These approaches are future-proofing the office market, making it more adaptable and resilient in the face of changing market conditions.

If you’re considering how refurbishment can unlock value in your property portfolio, get in touch to explore the possibilities.