Office Refurbishment ROI: How to maximise returns and stay competitive

Landlords today face a rapidly changing office market. Tenant expectations have shifted, and they demand so much more in terms of facilities and design. Advancing technology has also impacted the market landscape, with landlords expected to offer spaces with in-built infrastructure designed to support the latest 5G networks, IoT devices, and digital workplace solutions.

Stricter sustainability standards have also impacted the market landscape, with increasing pressure for businesses to meet their ESG goals. A workplace that has been built to support the latest green technologies, renewable energy systems, and intelligent resource management will be highly coveted.

For landlords, upgrading is no longer optional; to stay competitive, demand the highest rents, and attract top-performing businesses, investing in office refurbishments has become a strategic move with direct financial benefits. Properties that fall behind on efficiency or infrastructure lose out to competition, and can leave landlords with expensive unoccupied space. Thoughtfully upgraded spaces attract higher-value tenants, increase rental yield, and reduce vacancy periods.

Area transforms ageing commercial spaces into future-ready, high-value workplaces for a competitive market.

Why Refurbishment Is Now a Strategic Necessity

Businesses searching for their next workspace are increasingly seeking offices that are not only functional and aesthetically pleasing but also aligned with environmental, social, and governance (ESG) goals.

According to JLL’s “The Future of Work” report, 74% of occupiers say sustainability is now a significant factor in their real estate strategy. Buildings that lack energy-efficient systems, wellness-focused design, and adaptable infrastructure are becoming liabilities, and as more and more workplaces are upgraded to match demand, landlords who choose not to risk being left with properties that are harder to let command lower rents and quickly fall behind in market value.

In key markets like London, evidence shows a growing “green premium”—where Grade A, sustainable office space achieves significantly higher rents—alongside a “brown discount” for outdated, non-compliant buildings.

Financial Benefits of Office Refurbishment for Landlords

Though the evidence speaks for itself, landlords may be left wondering whether investing in an expensive office refurbishment can bring about a good ROI.

While no doubt refurbishing a commercial office requires capital, doing so offers clear financial rewards:

Higher rental value

Upgraded offices secure higher rents. Buildings meeting BREEAM or WELL standards often earn 10–20% more in UK urban centres.

Higher occupancy and reduced void periods

Quality workspace attracts stable, long-term tenants. Outdated properties struggle to find similar contracts and face periods of non-occupancy as they struggle to find new tenants, while flexible, modern office designs support hybrid work and are more likely to remain fully let.

Lower operating and maintenance costs

Investing in contemporary technologies can help workspaces become more energy efficient, thus lowering operational and ongoing maintenance expenses in the long term. Replacing outdated HVAC, lighting, and MEP systems with efficient options can cut operating costs by up to 40%.

Improved asset value

A refurbished, ESG-ready building appeals to investors focused on sustainability. As more and more businesses are being scrutinised by both their customers and lawmakers on their commitments to sustainability, non-compliant assets risk becoming left behind.

The Cost of Inaction

While refurbishment requires upfront investment, deferring action can lead to higher costs over time, both financial and reputational. There is no indication that the market is set to change, and it is likely that tenants will only expect more as technologies improve and competition becomes more fierce. Landlords who hope to ‘weather the storm’ are more likely to find themselves stranded, and the longer they choose to wait, the larger the financial risk of doing nothing will be.

Opting not to act could lead to:

• Regulatory risk: From 2027, landlords in England and Wales may be unable to let buildings unless they meet an EPC ‘C’ rating, with a ‘B’ rating required by 2030 under MEES proposals.
• Tenant flight: Businesses with ESG commitments will not tolerate poorly performing offices. Tenant churn increases and lease terms shorten when space fails to meet current standards.
• Insurance and liability issues: Outdated electrical, fire safety, or HVAC systems increase compliance risks and insurance costs.
• Obsolescence: Offices that do not support modern technology and hybrid working models will become less relevant in a rapidly evolving market.

Designing for Long-Term Value with Area

At Area, our experts work with landlords and asset managers to create bespoke office designs that align with evolving tenant needs. We draw on our integrated project delivery and market analysis expertise to unlock the full value of existing buildings through thoughtful, commercially driven refurbishment tailored to both asset and occupier goals.

Sustainability-first design

Working with us means creating a customised, sustainability-first design that combines in-depth energy audits, innovative materials selection, and bespoke low-carbon refurbishment strategies. Our vision incorporates a transparent, tailored approach that ensures compliance, operational efficiency, and a lasting visual appeal while working within your specific budget and targets.

Technology-ready infrastructure

We specialise in integrating advanced technology fit for the contemporary workplace that will attract forward-thinking businesses. Features such as bespoke touchless access, custom smart lighting, and IoT-enabled systems are all seamlessly incorporated into refurbishments, ensuring your asset stands out for premium occupiers and remains adaptable for future advancements.

Flexible layouts that attract quality tenants

We design spaces that are attractive, functional, and adaptable to tenant needs, enabling simple reconfiguration between lets and reducing long-term costs. This makes our designs suitable for several different functions and business types, providing versatility through modern, modular, forward-thinking workspaces that can be future-proofed against changing market trends and workplace expectations.