"Modern workspaces demand flexibility and connectivity, and heritage buildings can deliver both without compromising their historic integrity"
- Martin Lemke - AM ALPHA
The post-pandemic workplace is evolving rapidly. As employees expect more from their environment, companies are rethinking not only how they work, but also where. They are looking for spaces with character, sustainability, adaptability, and creativity – qualities that standardised offices often lack.
This shift is reflected in market trends. In the first half of 2025, 83% of new office space in London came through refurbishment rather than new buildings, signalling strong tenant preference for high-quality, eco-friendly spaces.
Similarly, demand for office space in the UK is 19% higher than the same period last year and the highest level since pre-pandemic. Prime rents in Manchester have climbed to £45 per sq. ft. (Q4 2024), outperforming other major cities.
These trends highlight a clear opportunity for developers to focus on heritage buildings with inherent character and adaptability. It’s the best way for firms to serve a new generation of employees who are deeply invested in their workspaces.
Sustainability and ESG benefits
Commercial buildings account for 23% of the UK’s built environment carbon emissions, and retrofitting an existing heritage structure is a major decarbonisation opportunity. Data shows that deep retrofits can reduce carbon by 50-75% compared with building from scratch.
Preserving an existing building avoids the embodied carbon associated with demolition and new construction, reduces material use and waste, and aligns with ESG and investor sustainability goals.
A great example of this is the renowned flagship M&S store on London’s Oxford Street. Demolition and rebuilding likely released nearly 40,000 tCO2e - the equivalent of driving a typical car almost 100 million miles. Retrofitting the existing structure, however, would have resulted in substantially lower emissions.
At Rylands, sustainability is our core focus. From the outset, careful consideration was given to minimising environmental impact during the strip-out and demolition works. Obsolete fixtures and fittings were donated to local charities where possible, redundant wiring, heating systems, steel, and bricks were recycled or reused, and concrete removed to form the atrium was crushed on-site for new foundations.
The development aims to achieve net-zero carbon by improving the existing building fabric, incorporating energy efficiency systems such as fully electric heating, heat pumps, solar panels, and restoring historic roof lights and mansard windows with energy-efficient glazing to maximise natural light. Thermal improvements to walls, floors, and roof reduce heat loss by up to 93%, while new glazing reduces heat loss through windows by 66%.
The benefits extend beyond carbon reduction, though. Energy upgrades and careful planning improve long-term operational efficiencies, lowering costs over the building’s lifecycle. For occupiers, these improvements also support ESG ambitions, particularly as Minimum Energy Efficiency Standards tighten, requiring an EPC rating of at least C by April 2027.
Projects like Rylands aren’t just focused on sustainability during the build process. Instead, they’re actively designed to support decarbonisation efforts once a property is fully operational. With the UK’s decarbonisation target getting closer, this outlook is essential for future-proofing operations for developers.
Heritage as a placemaking and attraction tool
Heritage buildings carry an inherent branding and placemaking value. Preserving these buildings has a positive impact on the surrounding community by maintaining cultural assets, while also creating character-rich spaces that contribute to a city’s identity, cultural capital, and narrative.
Modern workspaces demand flexibility and connectivity, and heritage buildings can deliver both without compromising their historic integrity. Modular layouts, smart building systems, and digital design tools enable the seamless integration of contemporary functionality with architectural heritage.
This is becoming increasingly valued by tenants seeking distinct, inspiring work environments. Moreover, the demand for such meticulous development encourages premium rents and high occupancy rates, demonstrating the viability of these investments for developers.
For example, we've recently secured a pre-lease agreement with street food vendor, Market Place. The deal was agreed two years before the expected completion of the building, demonstrating that established brands recognise the value of heritage spaces and are willing to commit early, validating wider market appeal.
Heritage buildings also provide differentiation in competitive office markets. In a landscape where standardised floorplates dominate, the unique character of a historic building, combined with modern amenities, creates an offering that stands out to prospective tenants.
Strategic implications for global real estate investors
From an investment perspective, heritage retrofit represents a resilient asset class. They offer the dual advantage of meeting stringent ESG requirements while providing differentiated, attractive workspaces that command premium rents. In volatile markets, these assets demonstrate stability and long-term appeal.
For developers and investors with access to the UK’s rich stock of historic buildings, with an estimated 165,000 commercial and business premises currently lying empty(1), heritage retrofits also present an opportunity for global replication. The combination of sustainability, character, and technology-driven adaptability meets the expectations of forward-thinking occupiers and positions heritage buildings as a strategic solution for the future of work.
