The face of London’s office market is changing—and fast. In 2025, 83% of new office space coming to market is not from gleaming towers breaking new ground, but from refurbished buildings already rooted in the capital’s skyline.
This shift marks a major transformation in how the city is modernising its commercial footprint. Developers, investors, and tenants are increasingly looking at upgrades over new builds. It’s not just a matter of saving costs. It’s about sustainability, flexibility, and meeting rising tenant expectations without the environmental and financial cost of starting from scratch.
So why is London embracing refurbished offices with such enthusiasm—and what does it mean for businesses and buyers exploring commercial opportunities?
Let’s take a closer look.
The scale of the shift
In previous decades, new office developments in London often meant glass-fronted skyscrapers and disruptive construction zones. But in 2025, that’s no longer the dominant trend.
Across London, a staggering 83% of new office supply is being delivered via refurbishments, not new developments. This data reflects both Central London and fringe markets like Southbank, Shoreditch, and King’s Cross.
The remaining 17% of new space stems from ground-up builds—many of which had already broken ground pre-pandemic. But current and future supply pipelines are leaning heavily on repositioning existing assets.
It’s a refurbishment boom, and it’s reshaping the market.
Why refurbishment over new build?
Several forces are driving the capital’s sudden pivot away from new office construction.
1. Environmental pressure
Refurbishment is seen as a more sustainable option. Constructing a new building typically involves far more embodied carbon—the emissions generated from sourcing, transporting, and assembling materials.
In contrast, retrofitting existing buildings reduces the need for demolition and structural rebuilds. This keeps tonnes of material out of landfill and dramatically lowers the carbon footprint of the project.
As both occupiers and developers commit to net zero targets, refurbishments have become the default route to reducing environmental impact.
2. Cost and timescale benefits
New builds are expensive and time-consuming. Planning permissions, demolition, and construction costs can take years to justify—especially in a market where occupier demand is still rebounding post-pandemic.
Refurbishments, on the other hand, are typically faster to deliver and more cost-effective. Landlords can reposition tired stock, upgrade features, and meet tenant expectations without the disruption or delay of a complete rebuild.
In a volatile market, speed matters. Refurbishments offer quicker returns with lower risk.
3. Tenant demand has changed
Post-pandemic occupiers want less space, but they want it to be better. That means smaller footprints but higher-quality, amenity-rich environments.
The rise of hybrid working has changed how offices are used. Employees are coming into work for collaboration, innovation, and culture—not just desk time. As a result, demand is shifting towards flexible floorplans, wellness spaces, smart technology, and energy-efficient systems.
Many existing buildings can be upgraded to meet these expectations. And for landlords, that means an opportunity to attract strong tenants without starting over.
Flight to quality drives investment
Another key factor in London’s refurb boom is the flight to quality.
Companies are more selective about where they lease. They want buildings that reflect their brand, help retain talent, and support sustainability goals. And they’re willing to pay premium rents for the right space.
That creates a golden opportunity for investors and developers to refurbish older, lower-spec stock into Grade A office space. The potential rental uplift makes these projects financially attractive.
In 2025, refurbished offices are increasingly achieving rent levels once reserved for new developments—especially if they deliver the right combination of design, functionality, and location.
Where is this trend most visible?
The refurb boom is playing out across London—but it’s particularly visible in:
The City: Traditional office buildings are being stripped back and upgraded for modern occupiers. There’s a growing focus on smart building systems and collaborative spaces.
West End: Iconic buildings are getting facelifts to attract boutique financial firms, media companies, and luxury brands.
Southbank & Shoreditch: Industrial conversions are popular here, where style and creativity meet sustainability.
Canary Wharf: Even in this high-rise district, landlords are rethinking existing towers with amenities, fitness centres, and energy efficiency improvements.
This trend isn’t limited to Central London either. Outer boroughs and emerging commercial hubs are also seeing older buildings modernised rather than demolished.
Sustainability regulations accelerate change
Environmental regulations are becoming tighter, and energy efficiency is no longer optional.
Landlords risk losing tenants—or even being unable to let space at all—if they don’t meet Minimum Energy Efficiency Standards (MEES). As of 2023, any property below an EPC rating of E cannot legally be let in England and Wales. Future legislation is expected to push this requirement to C or higher by 2027.
That’s triggered a wave of action. Refurbishment allows landlords to bring properties up to code and future-proof their portfolios, while aligning with corporate ESG commitments.
With many older office buildings still underperforming, retrofitting is becoming a legal and commercial necessity.
Occupiers value wellness and amenity-led design
One of the most dramatic changes in post-Covid office demand is the emphasis on wellbeing.
Occupiers now expect:
- Natural light
- Outdoor space
- Fresh air ventilation
- Cycling facilities
- Breakout zones
- On-site cafés or wellness rooms
These aren’t bonuses—they’re essential for attracting and retaining staff.
Refurbishment projects allow developers to rethink how space is used. By incorporating biophilic design, wellness-led layouts, and sustainable systems, older buildings can meet modern expectations.
In some cases, refurbished buildings are even outperforming new builds in terms of employee satisfaction and productivity.
What this means for commercial buyers
For those exploring commercial properties for sale in London, the refurb boom presents some interesting dynamics.
Refurbished offices often offer a better balance of value and performance. They combine the character of existing architecture with the functionality of modern upgrades. For investors, this often means less risk and shorter void periods, especially as tenant demand concentrates on quality space.
For occupiers, refurbished space offers flexibility and affordability—without sacrificing location or sustainability credentials.
And for developers or asset managers, it means focusing on adaptive reuse as a long-term strategy. Rather than chase the next tower, the most valuable move could be upgrading what already exists.
Challenges and considerations
Of course, refurbishment isn’t without its challenges.
- Planning permission may still be needed, especially for listed buildings.
- Structural limitations can restrict how much a building can be transformed.
- Asbestos, cladding, or outdated systems can create hidden costs.
- Achieving top EPC ratings isn’t always straightforward.
But with the right planning, many of these hurdles can be overcome—and the rewards often outweigh the risks.
Final thoughts
London’s office market is changing—and 2025 is shaping up to be the year of the refurb, not the rebuild.
With 83% of new supply coming from upgrades, it’s clear that the industry has embraced a more sustainable, flexible, and intelligent approach to growth. Refurbishment isn’t just a reaction to budget pressures or green mandates—it’s a smart, future-facing strategy.
For tenants, it means more high-quality spaces tailored to today’s working patterns. For landlords and developers, it offers a way to maximise returns while meeting environmental standards. And for investors, it’s a chance to tap into a rising demand curve without the risks of major construction.
Whether you’re searching for office space, assessing a portfolio, or exploring commercial properties for sale in London, the message is clear: the most valuable assets of 2025 won’t be brand-new towers. They’ll be old buildings, reborn.
