Future of office investment in London: the main drivers
The office market is changing.
The main question for investors is: "How to ensure the stable competitiveness of our buildings in the next cycle?"
According to CBRE's UK Real Estate Market Outlook 2026, demand is increasingly concentrated around high-quality, well-located office space, while limited supply of prime stock is supporting stronger performance at the top end of the market.
This is particularly visible in Central London. The shortage of Grade A space means quality is becoming an increasingly important differentiator between assets. For owners of existing buildings, that creates an important question: whether an older property should simply be maintained in its current condition or repositioned to compete for occupiers seeking a higher standard of space.
CBRE's 2026 outlook also points to limited new supply, making refurbishment an increasingly relevant part of the market. Existing buildings therefore have an opportunity to compete with newer stock — provided investment is directed toward the aspects of the asset that occupiers increasingly value.
This creates a clear divide.
High-performing offices — with strong locations, modern building systems, better energy performance and flexible, occupier-focused design — are attracting greater occupier interest.
Older, underperforming stock faces increasing pressure from:
- Changing occupier expectations
- Higher operational costs
- Energy performance requirements
- The need for modern workplace standards
Importantly, age alone does not determine which side of this divide a building falls on. Existing office stock can remain competitive when refurbishment addresses the underlying performance of the asset rather than focusing only on cosmetic improvement.
For occupiers, the experience of a building begins long before the individual workstation. Comfort, temperature control, lighting, acoustics, common areas, technology, flexibility and running costs all contribute to how a workplace performs. For owners, these factors increasingly form part of the commercial proposition of the building itself.
For property owners, this situation also carries opportunity.
Existing buildings can often be repositioned through strategic refurbishment:
- Improving EPC performance
- Upgrading M&E systems
- Enhancing occupier experience
- Extending asset lifecycle
- Protecting long-term capital value
Repositioning therefore does not necessarily mean rebuilding. A technically informed refurbishment can address the elements preventing an existing asset from competing effectively: outdated services, inefficient systems, inflexible layouts, tired common areas or an interior standard that no longer reflects occupier expectations.
The scope will be different for every building. The important point is to identify which interventions can materially change the performance and market position of the asset before capital is committed.
The future of office investment will be defined by how intelligently existing assets are transformed.
In a market where new Grade A supply remains constrained, this creates a strong case for looking again at existing stock. The question becomes not simply what is this building worth today?, but what could it become after the right technical and spatial interventions?
At SHATRO | London, we help commercial property owners unlock the potential of existing buildings through EPC assessments, technical planning and turnkey refurbishment solutions.
Get in touch to talk through your building's repositioning options.
