Office Evolution Conference – key takeaways

On 4 November 2025, Estates Gazette hosted its Office Evolution conference, bringing together various stakeholders including investors, landlords, occupiers, developers and agents to explore the future of commercial workspaces across the UK.

Here are our key takeaways from the event: 

1. Occupational strength driving cautious optimism
   Despite some nervousness around the upcoming Autumn Budget and the potential long-term impact of AI on office use, the occupational market remains robust — particularly for Grade A space, where demand continues to outstrip supply. There is growing optimism that this will soon flow through into the investment market.
2. Environmental performance is non-negotiable
   ESG credentials and optimal energy performance are now a prerequisite, not a preference. EPC ratings and BREEAM scores are driving occupier decisions and, on the investment side, a key determining factor in access to some debt finance options. Buildings that don’t meet the mark risk being left behind – or repurposed entirely. Continued inflation in development costs is restricting owners of lower rated premises from meeting these expected standards, widening the gap between best-in-class assets and the remainder of available stock.
3. AI unknowns
   There are concerns about how AI might reshape office use in the long term – particularly the potential impact of automation on workforce size and, by extension, demand for desk space. On the other hand, both landlords and tenants see opportunities for AI to enhance building management by anticipating needs and streamlining services. The consensus? The long-term implications of AI remain uncertain.
4. Peak amenity reached?
   Reliable WiFi, outdoor space and transport connectivity win over climbing walls and squashy sofas. Whilst the demand (and premium) for amenity rich assets remains high, tenants want core features that work seamlessly, not frills – and landlords who understand their business and can offer services that are appropriate for their occupation. The working relationship between landlord and tenant is becoming more important than ever in achieving a holistic, amenity rich real estate offering.
5. Refurbishment over new build
   The office construction landscape has shifted significantly over the past decade. Refurbishment now dominates new supply, particularly in London and Manchester, where it accounts for 83% and 63% of new office space under construction, respectively. With ESG pressures and rising costs, retrofitting is often the only viable option — renew, not new!
6. Fit-out to flourish
   Pre-fitted floors are increasingly popular (and in some cases, essential) for short-term occupiers that do not always have the time or capital to invest, while larger tenants want spaces that can evolve with their workforce and working styles. Often, standard Category A fit outs do not work with the Category B layouts that tenants require; larger landlords are turning towards shell and core delivery with contributions allowing the tenant to implement the Category A and B fit outs that they require.
7. Community is the new currency
   A paradigm shift is underway. From campus models operated by British Land that seek to cultivate communities of sector specialist start-ups to compete and grow together, to Lloyds Banking Group’s strategy of creating not just a space but an environment (the office “experience”) where people thrive together, the shift is clear: office space is no longer seen just an operational asset but a place to foster community and in turn drive productivity.
8. Crunch time
   Data from Deloitte’s Crane Survey points to a critical shortage of Grade A office space looming across major UK cities. Many occupiers, having downsized post-COVID, are now seeking larger, higher-quality premises and demand is outpacing supply. ESG requirements are also tightening the field, with occupiers prioritising buildings rated EPC B or above and targeting strong BREEAM credentials. Expect to see upward pressure on rents and growing demand for flexible workspace solutions.