Refurbishing Existing Office Space Could Support Businesses and Help the Planet
The pandemic has brought about permanent changes in office culture, leading corporate building owners to opt for refurbishments as they navigate flexible working patterns and new environmental regulations. According to research conducted by insurance broking firm Gallagher, 63 percent of UK business leaders are modifying their office space to adapt to the evolving ways of working, with many investing in shared and collaborative areas.
These transformations have been necessitated by the need for building designs that can accommodate fluctuations in capacity. Additionally, new environmental regulations aimed at reducing building-related carbon emissions are pushing owners and occupiers towards sustainable spaces. All commercial buildings are now required to have an energy performance certificate (EPC) rating of E or above, which will rise to C in 2027 and B in 2030. However, a report by estate agent Savills reveals that 73 percent of London’s office buildings currently have a rating of D or lower.
While it may be tempting for occupiers to abandon their existing office spaces due to the cost of upgrades, Benjamin Lesser, head of design and innovation at property development business Derwent London, argues against this approach from a sustainability perspective. Lesser says, It would be a disaster to hollow out our cities. The sanest position will be to have high-quality, highly sustainable buildings that make it desirable for people to come into the city.
Consequently, a wave of refurbishments is expected in the coming years, aimed at accommodating changing work patterns and improving energy efficiency. Fortunately, these two objectives go hand in hand. David Healy, director for building services at professional services consultancy WSP, explains that the focus is now on optimizing buildings to respond to new flexible working patterns in order to reduce energy consumption. In the past, the tendency was to include excessive cooling and power systems, but with buildings now being less consistently occupied, these systems often exceed the necessary capacity. The best approach, says Healy, is to optimize the initial building design, utilizing smart technologies to tailor energy supply to demand in real time.
Chris Twinn, a strategic sustainability adviser and board member of the Low Energy Transformation Initiative (LETI), points out that buildings are also exploring new forms of energy storage to balance out peak and low demand periods. This could enable larger buildings to generate their own energy and avoid overburdening the grid during times of high demand.
Aside from regulatory requirements, the need to decarbonize the built environment is unquestionable. Buildings account for a significant 39 percent of global energy emissions, according to the World Green Building Council. While operational emissions contribute the majority, over a quarter of emissions come from the materials and construction (embodied carbon) of buildings. Therefore, it is more sustainable to work with existing structures rather than demolishing poorly performing buildings and starting from scratch, as demolition processes often generate higher carbon emissions.
Samantha Carlsson, senior sustainability manager at Derwent London, highlights the importance of considering repurposing options even when a building needs to be demolished. She suggests utilizing materials that can be salvaged from the existing structure and exploring their potential for reuse or transformation into different products.
While green renovations can be costly, there is a strong economic case for them. Higher performing buildings lead to increased occupancy rates for landlords, as sustainable properties are in demand and command higher rents, creating a green premium. On the tenant side, workplaces play a crucial role in achieving net-zero goals, and tenants may struggle to sublease office spaces that do not meet environmental standards. Benjamin Lesser emphasizes the rising importance of environmental, social, and governance (ESG) factors for companies and their attractiveness to potential employees and clients.
The current regulations serve as a starting point and are expected to drive stronger environmental guidelines for corporate buildings in the future. Chris Twinn points out that the aim is to move toward a world where businesses coexist more harmoniously with the planet. By rethinking office designs both to comply with regulations and to improve employee well-being and productivity, building owners have the potential to benefit their businesses while simultaneously addressing environmental concerns.
In conclusion, refurbishing existing office spaces presents an opportunity for businesses to support their operations and contribute to sustainability goals. With the ability to optimize energy efficiency, accommodate changing work patterns, and enhance employee well-being, the renovation trend is set to reshape the corporate landscape for the better.
