As prime rental growth trends upward, it’s evident that not all office buildings will benefit from this surge. For lower-grade stock, retrofitting to meet new standards may be prohibitively expensive, making repurposing a viable and often necessary alternative.

James Evans, Savills UK National Head of Office Agency, highlights a key challenge: “Businesses are driven by how they can attract the best people. Today, that’s in the top-grade building but not the second-grade one – so what do you do with that building? That’s a challenge for the existing landlord – but it can be exciting. We’re seeing some interesting alternative uses popping up in city centres, particularly around the education sector and hotels. In many instances, this will be to the benefit of the wider location, as tired, half-empty offices can be transformed into more dynamic, energetic uses that will drive footfall.”

At Criterion Capital, we embrace this challenge as an opportunity for innovation. Our expertise in adaptive reuse allows us to reposition outdated office spaces into vibrant, sustainable properties that meet modern needs. A standout example of this is Zedwell, our unique sleep-focused hotel brand that transforms obsolete office buildings in prime city locations into serene, windowless and soundproofed “cocoons” designed to enhance rest and relaxation for guests.

As Omar Aziz, Director at Criterion Capital, notes: “These insights from Savills reinforce the need to rethink traditional office spaces. At Criterion Capital, we are dedicated to repurposing underutilised properties into dynamic, green assets like Zedwell that drive economic growth and enhance community well-being. By transforming these spaces, we address current market demands while supporting long-term sustainability.”

With Savills estimating that 0.7% to 0.9% of office stock needs repurposing annually to balance the market by 2033, Criterion Capital remains at the forefront of this transformation, leading the way with innovative, eco-friendly solutions.

Please click here to read the full report