Not so long ago, the commercial heart of many towns and cities pulsed with life – local cafés, dry cleaners, sandwich shops and newsagents thrived on the daily rhythm of office workers spilling into the streets. Above them, offices buzzed with energy: teams collaborating, phones ringing, ideas flowing. These spaces were more than just workplaces – they were anchors of economic and social activity. Today, however, the picture has shifted. Shuttered windows, “to let” signs and echoing office floors reflect the challenges of hybrid working patterns and reduced demand for traditional office space. Without intervention, there is a risk of losing not just commercial floor space, but the ecosystems that depend on it.
One potential solution is for local councils to adopt a proactive approach by identifying viable office zones – locations where demand persists, infrastructure is strong and potential exists to sustain vibrant employment clusters. Within these zones, regional planning policy could streamline approval processes, making it quicker and easier to refurbish, repurpose or develop office space that meets modern requirements. Targeting investment and planning efforts in the right places can help stabilise commercial occupancy, support surrounding businesses and ensure that the office remains a relevant and resilient part of urban life.
A regional perspective brings further advantages, leveraging the local market knowledge held by agents and stakeholders on the ground. These professionals understand the nuances of supply and demand, know which buildings are vacant, and can identify opportunities that might be overlooked by policymakers working at a distance. Empowering regional authorities and local experts to shape strategies can produce tailored, realistic approaches to reducing vacancies and reinvigorating office space – avoiding one-size-fits-all mandates from central government.
Alex Smith, an architect and partner at Sheppard Robson, observed the tangible value of harnessing knowledge of the local market:
“In the regions, the research from agents is critical. Tenants can be tracked three to four years before their lease expires to best match a future product to their needs.”
Commenting further on the potential scale of value that can be realised when utilising this regional knowledge, Smith elaborated, “There’s a cluster effect around regional R&D ecosystems. Occupiers large and small will always want the same amenities and transport links to provide the office as an attractor, so knowing how to position an asset means that even if it sits static for a period of time it will be well positioned to market to attract demand when it realises.”
This understanding of tenant needs and market dynamics directly informs the kind of flexibility and lease structures that are in demand today. Hamish Allan, a consultant and director at Making Moves, noted that players in the market may prioritise two things over all else:
“In this market, occupiers may be less cash rich and therefore prefer that the fit-out cost be baked into the lease in order to avoid the need to raise £500,000 to £1 million to deliver their own space. They may be a smaller occupier going through a high-growth period and therefore want to avoid committing themselves to a five- or 10-year lease. More and more frequently we are seeing leases for 24 or 36 months, as tenants don’t want to commit themselves long-term to a space they may outgrow in the short to medium term.”
Harnessing this deep local and regional market knowledge is crucial to revitalising office spaces, safeguarding jobs and supporting local economies. Equipping local stakeholders with the right tools such as targeted funding, streamlined planning processes, and specialist expertise will enable them to address the evolving demands of occupiers, including the need for flexible lease terms and built-in fit-out solutions. With this support, community-rooted actors can become the driving force behind sustainable, locally attuned office regeneration hat reflects both market realities and tenant needs.
In an eight-part weekly series, the London real estate team will share insights drawn from a roundtable attended by a group of cross-practice industry experts to discuss the issues posed by subprime or so-called secondary offices with a view to proposing innovative, workable solutions. Each article focuses on a key “call for action” – a targeted idea to support those grappling with the realities of an evolving office market. Readers will hear directly from discussion participants, with selected quotes and real-life examples that bring to life the creative thinking and grounded advice contributors shared. To receive future updates on this topic, please email [email protected].