Real Estate & Commercial Offices

Hybrid working remains widespread, with many employers maintaining formal hybrid policies rather than reverting to full-time office attendance. Market analysis also points to a continued “flight to quality” with occupiers prioritising best-in-class space and releasing secondary space, increasing the operational and leasing pressure on older stock.

Regulatory and market pressures are accelerating the “obsolescence” conversation for lower-quality offices, forcing asset owners to plan for refurbishment, retrofit, repurposing or disposal. Alongside this, government is actively reforming the Energy Performance of Buildings (EPB) regime (including what EPCs measure and when they are required), signalling ongoing change that owners and occupiers need to stay ahead of.

The UK Net Zero Carbon Buildings Standard pilot launched in September 2024, providing a clearer methodology for defining and evidencing net zero carbon aligned buildings across sectors including offices reinforcing the direction of travel toward verifiable performance. At the same time, public-sector guidance continues to push decarbonisation and efficiency standards in building design and refurbishment as part of net zero commitments, raising expectations across the wider market.

Workplace violence and threats remain a material concern: HSE statistics estimate 689,000 incidents of violence at work in 2024/25 (Crime Survey England and Wales). Property owners must also contend with unauthorised occupation and trespass risks; RICS highlights that strong security and regular inspections are key to preventing and responding quickly to trespassers in commercial property.

National guidance is increasingly explicit that cyber risk is not just an IT issue, it is a business resilience issue that can disrupt operations and services. Government communications to major companies urge boards to treat cyber security as a board responsibility and to rehearse continuity and recovery following destructive incidents. For smart buildings and digitally enabled workplaces, this drives stronger alignment between physical security, operational processes, and cyber resilience planning.