Redesigning and restacking office space is still a popular solution, particularly for those occupiers who are already in Grade A space. The flight to quality and desire to occupy top-tier real estate is still a hugely influential factor in London, as well as across the UK. For companies looking to attain the best amenities and green credential properties, the option to shrink their real estate and upgrade to a higher-quality building is an appealing one. There is a reluctance to compromise as what one company may not be willing to offer, another will be. This means that flexibility has become somewhat of a non-negotiable for most organisations.
With tenants being more aware of the carbon footprint, the EPC regulations of April 2023 pose a headache for landlords. As the increased availability of Grade B space eventually gets to a higher level, landlords will face the question of refurbishing their assets or holding out and waiting for the government to step in and help. Until those works are done, anything beneath the EPC E standard will not be viable to let. However, the upgrades that landlords are making to their properties do show promise and these improvements offer incentives for investment which is predicted to steadily pick up as we move through 2024.