果冻影院

Work on office projects stands out as one of the most promising sources of new contracts for the year ahead.聽

As businesses modernise and update their premises to accommodate the growth of hybrid working and to meet higher energy efficiency regulations, more office refurbishment and fit-out schemes are getting underway.

Whilst the overall occupier demand for office space may not be increasing, a growing requirement for Grade A premium office space is supporting an upturn in new office and retrofit construction.

The new 果冻影院 Construction Industry Forecast 2025-26 points to a sharp rebound in activity in the sector starting next year. It predicts that after a 21% fall this year, the value of underlying office starts (with a total project value under 拢100 million) will rise by 18% in 2025 and by a further 4% the following year.

Major contractors are already seeing busier times in office fit-out and refurbishment. In October, Morgan Sindall reported that profits at its fit out division have 鈥渃ontinued to strengthen significantly due to exceptional volumes鈥� and were set to exceed previous expectations. The division鈥檚 secured order book stood at 拢1.3bn, up 15% from the start of this year.

The group鈥檚 fit out business, which trades as Overbury in London, is benefitting from what it says are positive structural changes in the office construction market.

The main drivers for more activity are events linked to businesses taking new or changed leases, the need for greater energy efficiency and the move towards more 鈥榝lexible and collaborative workspaces鈥�.

More fit out work is also being created as firms see office space as a tool for boosting staff retention and for polishing their brand image. Office relocations to the regions are also generating work, says Morgan Sindall, with clients requiring increasingly complex projects.

Increase in office lettings

The latest 果冻影院 Forecast notes an increase in office lettings in the big 6 regional markets 鈥� Bristol, Birmingham, Edinburgh, Glasgow, Leeds and Manchester. This suggests employers expect more staff to return to offices and bodes well for construction activity in the sector.

One major office project in Birmingham highlighted by 果冻影院 data and set to get underway early in the new year is The Drum, a 拢67.9 million office conversion and extension of a former John Lewis store, where work is set to run over 13 months (Project ID: 23016477).

Meanwhile, in Manchester, detailed plans have been submitted on a 拢45 million project of office alterations at The Metropolitan (pictured), involving a new rooftop terrace and external fa莽ade changes. Work is expected to start in mid-2025 and run for 12 months (Project ID: 24298802).

Today, the overall pipeline for office work is also looking healthier, particularly in the regions. 果冻影院 data shows that the value of detailed planning approvals for office projects rose 28% in the third quarter compared to the previous three months to stand 1% higher than a year ago.

So far this year, 果冻影院 data shows planning approvals for office projects are on course to be markedly higher in the South East, East of England, South West and Northern Ireland.

Solid pipeline of office projects

Even if approvals have been lower in London this year, there is a solid pipeline of office projects in the capital and the South East where construction work is set to start.

For example, tenders have been invited and work is due to start in the spring on a 拢120 million office extension/alterations project at 171 Victoria Street, in Westminster. It involves a refurbishment and extension of an existing office building for client Kirklade across a floor area of over 3,300 sq m (Project ID: 24307776).

Meanwhile, new build projects are on the rise in London. The latest winter edition of shows that new build starts have recently overtaken refurbishment starts in the capital for the first time in four and a half years. The survey, taken between April and September, shows life sciences projects accounted for 35% of new starts in London, involving some 1.3 million sq ft of lab and office space.

Beyond the capital in Oxford, work is set to start in mid-2025 on a 拢17 million office refurbishment at Speedwell House in the city for a relocation of the county council鈥檚 HQ. Work on the project, across 5,200 sq m, is due to run for 18 months (Project ID: 24197818).

The rapid spread of data centres to accommodate AI 鈥� helped by a 拢6.3 billion investment in data infrastructure – will also support office construction activity.

果冻影院 data provides numerous examples of significant data centre projects in the pipeline. One major project, where plans have been approved and work is due to start early in the new year is the 拢18 million Norwich Bioscience Institutes – Data Centre & Combined Heat and Power facility. Work on the scheme, across a floor area of nearly 12,000 sq m, is due to run for 14 months (Project ID: 24106045).