Office Refurb Work
There is an increase in office refurb projects, particularly in London, according to Glenigan. As companies seek to rebuild and reconfigure their business space to accommodate hybrid working, the offices sector can look forward to two years of growth.
New office projects will rise by 19% next year – Glenigan’s view
After a dip in activity this year, Glenigan is forecasting that the value of underlying new office project starts (under £100 million) will rise by 19% next year to £6.14 billion and by a further 11% in 2025.
More Opportunities in London for Office Refurb and Extensions
Glenigan state that the growth of refurb work to adapt office spaces is a major new source of opportunities. In London, around 40% of staff are hybrid working with an average of 2.3 days in the office. Extension and refurbishment work accounted for 63% of underlying new office starts in London last year, compared to 58% nationally.
It’s usually quicker and more cost-effective to refurbish and extend a building rather than entirely rebuilding it. Plus, there are additional benefits, such as reducing embodied carbon. For example, on the Rowe office refurb and extension project, we added 6 new floors of steel onto a concrete building. During the refurbishment, some materials were reused, and the concrete façade was retained.
Modern office designs with open floor plans
Modern office renovation designs usually feature an open floor plan. Structures with flexible floorplates are easily reconfigured in future. Adaptable designs that easily accommodate the changing needs of a building improves the longevity of a structure.
In office refurbishments, there is also a trend towards health focused furnishings such as ergonomic chairs, plants and suitable lighting. Creating an environment that is relaxing and comfortable while improving motivation and wellbeing.
Refurb opportunities in the public sector
In addition to commercial refurb work, there is also a growing number of opportunities for refurbishing buildings in the public sector.
The education sector has had a £456m fund approved for refurbishment work which includes 859 academies, sixth forms and voluntary aided schools. The money has been granted through the 2023/24 Condition Improvement Fund.
The healthcare industry is also benefiting from funding for refurbishment projects. The Department of Health’s £20bn New Hospital Programme provides opportunities for refurbishment projects throughout the UK.
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