Buy to Let | Retail & Distribution | Manchester | Birmingham | Glasgow | About Us
"What’s going to be the biggest trend for businesses in 2025? If these first few months, and last year’s results, are anything to go off, it’s going to be a continued return to office-based working (either full-time or hybrid).
But it's evident that businesses aren’t just settling for any office space as we’ve seen an increasing demand for higher quality stock (Prime and Grade A) whilst the available supply of lower grade premises (Grade B and C) largely goes ignored.
Sustainability has become one of the key drivers of this trend as businesses become increasingly conscious of their carbon footprint, implementing initiatives to reduce the environmental impact of their operations. So, energy efficient offices, often built using sustainable materials, have become more desirable as companies look to meet their net zero and ESG targets.
The demand for best-in-class could be a great opportunity for investors and developers to purchase secondary stock and renovate the premise to meet the higher demands. This could include improving energy efficiency, improving the infrastructure and amenities, or catering for hybrid and co-working models of work. With rental yields expected to grow over the next five years in all major UK cities, renovating now could help to achieve an even higher return on investment in the future.
SMEs and owner occupiers of Grade B and C stock, who may be looking for additional or better performing space in 2025/26, could find the market difficult as the best offices are quickly snapped up (often before completion on new projects). In this instance, despite the significant costs involved, refurbishing or extending their existing office space could be a cost-effective and time-saving option.
At Together, our range of long-term and short-term commercial finance products are designed with flexibility and speed in mind, and to help businesses of all sizes achieve their property ambitions."
- Ryan Etchells, Chief Commercial Officer, Together
Office space in focus
Ritchie Watson, Corporate Sales Director and Ed Kershaw, founder of luxury office space provider ByColony, discuss office property refurbishment trends, opportunities for investors and how Together has supported them to expand.
Trends and opportunities in the office property sector
Refurbishment trends.
Top 5 trends in office refurbishments (Respondents could select all options that applied)
Office vacancy rates.
Return to the office.
Where do employees typically work from?
City insights
- 1.05 million sq ft of office space under construction (Q4 2024)
- 29% annual increase in office take-up in 2024
- 90% of Manchester investors said office space would be a strong investment opportunity over the next five years
- 34% increase in revenue expected in next five years
- A quarter saw prioritising energy efficiency as a current trend in office refurbishments
With over 10,000 digital and tech-based companies calling Manchester home, it’s easy to see why the city has become an attractive hub for the tech industry. In fact, the northern powerhouse ranked second, behind London, as the best city to start a new business in a recent survey of UK tech industry leaders.
The Oxford Road Corridor Enterprise Zone is a great example of an initiative that’s stimulating the growth in ICT jobs, as well as those in the life sciences, health innovation, med tech and advanced materials sectors. This is leading to the retention of academic talent and an influx of young professionals, bolstering the workforce and bringing new skills to all sectors.
However, even with over a million square feet of office space currently under construction, there isn’t enough space to fill demand, especially for Prime and Grade A properties. As such, developers and investors may be looking at how they can refurbish their current property portfolio to offer better facilities to accommodate the growing trend for best-in-class.
Commercial property professionals and investors based in Manchester pointed to modernisation (44%) and wellness focused upgrades including gyms and relaxation areas (38%) as elements they’ve seen the most in recent office refurbishment projects.
Coworking spaces in Manchester
Not every business needs a dedicated permanent office. Whether that’s established companies that have fully embraced a remote / hybrid working environment, assisted by greater collaboration and communication technologies, or sole-traders and start-ups who can’t justify paying a full-time rent. But occasionally, they may need access to some of the benefits an office can provide.
That’s where coworking spaces can be valuable, providing optimal working conditions, access to amenities such as printers and meeting rooms, greater flexibility, and networking opportunities.
Currently, Manchester offers the second highest number of coworking spaces in the UK, after London, with 78 properties providing services. This number only looks set to grow in 2025, including two new locations from Colony confirmed for Spring Gardens and King Street.
In our survey of 500 commercial property investors, developers and professionals across the UK, 35% said that communal, mixed use and coworking spaces were a current trend they were seeing in office refurbishments.
Whatever the size of your business, there may come a time when you need additional funds to pay a tax bill, relieve cash flow issues or invest in property. Find out how our secured business loans can meet your needs quickly and easily.
City insights
- 708,000 sq ft of office space under construction
- Prime rent at £42.50 per sq ft. Expected to exceed £50 per sq ft by 2027
- 70% said office space would be a strong investment opportunity over the next five years
- 48% of property professionals in Birmingham said they’re seeing an increased demand from employees for better amenities
- 37% increase in revenue expected in next five years
Birmingham-based businesses were busy moving into their new headquarters last year, as the city saw 843,218 sq ft of floor space leased out. That was the highest amount since 2017, with figures growing year on year since 2020, demonstrating that the Birmingham office market is recovering well post-pandemic.
Office vacancy rates in Birmingham mirror the national trend, with an overall vacancy of 9.56% and Prime / Grade A vacancy levels at 2.7%. This shows that many businesses in the UK’s second largest city are disregarding available Grade B and C premises in favour of higher quality office spaces.
Repurposing space for offices in Birmingham
Conveniently placed close to the Bullring Shopping Centre and Birmingham New Street rail station, a new project is set to bring 200,000 sq ft of new office space to the heart of the city.
So, what’s different about it? Well, it will repurpose a former department store at Grand Central rather than being built from the ground up. Drum, set to open in 2025, combines a sustainable, innovative design with retail, leisure and hospitality elements to create an attractive best-in-class office space.
But repurposing doesn’t need to be done on such a grand scale. At Together, we’ve seen a trend of developers revitalising vacant buildings in our city and town centres into new residential, retail, leisure, hospitality and office opportunities.
Looking to secure funding for your next commercial property development? Get in touch with our expert team to see how we can help.
City insights
- 84% of commercial property professionals see office space as strong investment opportunity over next five years
- 29% increase in revenue expected in next five years
- 36% had seen more wellness-focused upgrades in recent refurbishments
In 2024, Glasgow’s office market saw an increase in the amount of floor space leased for the first time in two years. Whilst still far below pre-pandemic activity levels, it shows that demand for office space, especially Prime and Grade A, is high in the city.
But, with only 175,000 sq ft of new office space in the development pipeline for 2025, Glasgow could run out of quality floor space within the year. This could result in prime rental prices climbing from £41.50 per sq ft in Q4 2024 to £45 per sq ft by Q4 2025.
Commercial property professionals and investors surveyed in Glasgow reported that spaces designed with social value in mind (44%) and improved office amenities (44%) were the most popular trends in recent office refurbishment projects.
Refurbishing office space in Glasgow
In Q4 2024, there was over 2.8m sq ft of office space available in Glasgow, and vacancy levels hit 14.4%. So why are businesses in the city still struggling to find quality properties for their new offices in 2025?
Businesses aren’t willing to settle for anything less than the best when it comes to office facilities, and the majority of Glasgow’s available space is dominated by Grade B and C properties (1.5m sq ft). The issue is compounded by a lack of quality offices in development, with almost a quarter already preleased.
The solution for many business operators has been to improve their existing offices to meet business and energy efficiency standards. At Together, we’ve been able to help companies looking to extend or refurbish their existing premises, with a range of flexible commercial finance products including bridging and commercial loans.
Employees too are dictating what they want most out of their workplaces. The top three trends in office refurbishments in Glasgow all centre on improving the daily experience for workers:
- Designing the space to be in line with social, economic and environmental values (44%)
- Improving amenities such as coffee machines, water taps and kitchen facilities (44%)
- Adding more wellness-focused upgrades such as gyms and relaxation rooms (36%)
Businesses that fail to meet these heightened employee expectations may find themselves struggling to attract and retain the best talent, losing out to competitors or remote working options.
We know that there’s often no time to waste in business. Find out how our capital raise bridging loans could provide you the short-term finance you need to make the needed changes to your office environment.
Buy to Let | Retail & Distribution | Manchester | Birmingham | Glasgow | About Us
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