Savills’ World Research spotlight on Office Refurbishments in UK Regional Cities Summer 2017 reveals that rising construction costs, along with build cost inflation, is causing developers to switch their attention to refurbishments.
Refitting, often a key element of refurbishment, has also become a key component of many of today’s office upgrade. Formica Group, aware that a war on talent is feeding office design, is increasingly seeing the delivery of creative internal fit-outs that aim to inspire staff and entice millennials. The addition of attractive reception areas and the installation of gyms and bars being prime examples of the extra dimension being added to offices to secure top tier talent.
Research indicates that over the next three years, 38% of the total speculative office space in the UK will be delivered in the form of refurbishments. As a result, the average rent of UK offices will rise. Savills believes we are now at the stage in the cycle where landlords have an opportunity to refurbish secondary stock to secure rental uplift.
Just as the life cycle of a building deteriorates over time so too does office aesthetic, often at a faster rate. Manufacturers that offer easy to install surfaces with substantial décor options facilitate the freedom for offices to change and adapt their look to support increased productivity and comfort.