The topics of this article were originally discussed during our recent breakfast seminar, ‘What is Next for Office Spaces?’, held in our London office on 22 April 2026.
In the face of significant economic factors and large evolution within client demands, the UK office market has continued to adapt and show resolve.
Building on our engaging seminar, we review what commercial real estate (CRE) stakeholders should consider about where office spaces go next from here.
Becoming accustomed to volatility
In the wake of the Covid-19 Pandemic, instability and elevated uncertainty have become features of the office rental market. Asset owners, office managers, and clients have all had to remain agile to navigate these changes, and over six years on from the first lockdown, stakeholders have acclimatised to the continued volatility within the industry.
London, in particular, has emerged as a safe haven for CRE investors. Global capital increasingly perceives London as a location that can offer more stability than other major cities – a trend that many within the industry expect to persist.
Furthermore, a flight to quality has dominated the recent investment outlook, with a clear concentration in Grade-A office space. However, high demand for best‑in‑class, well positioned office space is being challenged by an undersupply of genuinely high‑quality stock.
The continuing evolution of WFH and remote working
While the Covid-19 Pandemic ushered in a sudden shift that accelerated employees working from home (WFH), the concept of flexible working has been evolving for decades. In 2026, hybrid working patterns have been settled on by the majority of workers and companies.
However, hybrid working can result in offices experiencing occupation spikes during the incredibly busy mid-week period. This places greater pressure on facilities, such as meeting spaces, which can become scarce. If employees can’t reliably access provisions like these, will they remain positive about coming into the office?
Controlling the controllables: searching for an inspired design
In light of altered working arrangements, it is critical that modern office spaces encourage people to return to the office.
To achieve this, landlords should identify what industry they are targeting and speak to clients to get a feel for what they want. Businesses often demand ready-made solutions they can quickly and seamlessly occupy, with desirable amenities, such as terraces, showers, cycle spaces, bars, gyms, and coffee shops.
Additionally, landlords should focus their attention on how they can enhance their service offering through their offices’ designs. Separate lifts and access points can split office spaces up and make clients feel like they have ‘their own space’. Beyond physical aspects, flexible or short terms leases are also increasing in popularity – offering such agreements can be a key point of differentiation.
Is the importance of ESG declining?
For prospective tenants, enhanced and superior ESG features will rarely be a deciding factor. Businesses that feel strongly about sustainability will pay a premium for an excellent ESG-rated office, however, for others, it matters less, and they are happy to occupy an office that reaches the minimum standards.
To improve ESG ratings, the capex required can be high and difficult to justify. For existing stock, ESG-related upgrades can be challenging. Optimum performance and layout are both typically much easier to achieve with new constructions. As reinvesting back into existing stock is predicated on tenant rotation and income profile, it is essential asset owners get a good understanding of the market they are targeting, before initiating retrofits.
ESG isn’t just limited to tenants, and it is important that offices also add value to local residents. Developers are expected to provide community use facilities, contribute to public spaces, and respect historic areas. Development at 85 Gracechurch Street, London, which will include an ‘immersive experience’ exploring London’s first Roman Basilica (opens a new window), is a key example of this.
For more information, reach out to a member of our dedicated Office sector team here (opens a new window).
