United Kingdom Office ViewPoint - Refurbish to Reinvent, October 2016
Refurbish to Reinvent identifies a looming shortage of quality office space in a number of UK regional office markets and predicts the rise in popularity of secondhand office space for both occupiers and landlords.
From an occupier perspective, choosing a refurbished office provides the benefits of a new high quality office at a lower cost and in a shorter time frame, in contrast to a new redevelopment. It may well be the most pragmatic, savvy, cost effective option, particularly if existing office space is centrally located, possibly benefitting from an attractive car parking ratio (something which is less common in new built stock). There are also key environmental benefits, including the option to attain higher sustainability standards.
From the landlord perspective, there is clear opportunity in repurposing existing office space, particularly in rising markets where prime space is limited or is slow to trickle through into availability. Elsewhere, in locations that have seen substantive amounts of office space lost to other uses, repurposing allows the creation of office space that stands out from other secondary space in the market, thereby maximising income.