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A city-centre office scheme in the north of the UK 鈥� but which could be anywhere in the country 鈥� seeks to turn a tired workplace into a future-proof commercial asset. Let鈥檚 call it 鈥淧roject Transformation鈥�.

The modern market demands high performance, lower operating costs, alignment with corporate ESG goals and an attractive occupier experience. These are widely considered as essential requirements, but this asset 鈥� like much of the UK鈥檚 building stock 鈥� lags behind on almost every front.

The ideal route to future-proofing similar types of assets will involve the full commitment of investors and vacant possession of buildings. But, in the real world of tight budgets and complex leasing arrangements, detailed technical insight about the condition and potential of an asset can still chart a course forwards.

By undertaking a comprehensive building review, we began a rolling programme of refurbishment to address the needs of both clients and tenants and interrogated the building鈥檚 commercial effectiveness

The fabric and operational efficiency of Project Transformation 鈥� comprising six storeys and a basement, with multiple occupancy and three distinct building services systems 鈥� was tired by the late 2010s. The servicing regime needed upgrading, the gas-first heating system required a major overhaul and the glazing and roof structure were both dated.

Fixing these problems would offer a refresh, but it would not be enough to future-proof the asset. By undertaking a comprehensive building review, we began a rolling programme of refurbishment to address the needs of both clients and tenants and interrogated the building鈥檚 commercial effectiveness. The goal was to take a long-term view on planning for capability and use, based closely on what had 鈥� and had not 鈥� worked in the past.

Commercial effectiveness is key to unlocking resilience for the future, and it begins with technical experts like engineers and surveyors having the opportunity to get under the skin of an asset.

The most effective moment to do this is at the time of purchase, as part of a buyer鈥檚 technical due diligence (TDD) reporting, including MEES reviews and net zero carbon assessment. A rigorous TDD process sets the agenda for interventions tp take place long into a building鈥檚 future operational life. It will inform planned preventative maintenance (PPM) and provide holistic data to inform redevelopment or retrofit works. Even better outcomes arise when TDD reports are integrated with dilapidations protocols and account for the physical end-of-life for part (or all) of a building.

Applying this perspective at any point in the lifecycle 鈥� not just at scheduled milestones 鈥� can be critical to a building鈥檚 long-term success. Allowing technical specialists to drive the building鈥檚 journey to better sustainability credentials will ensure that it remains attractive to future tenants with serious commitments to ESG. It can also help to minimise costs and prolong the life of existing components.

MEP components form around 30-35 per cent of the construction costs of any new office build. Once construction is completed, ongoing operational costs are designed to be relatively small.

The commercial as well as technical value of advisers has become clearer as the resilience of our existing building stock is challenged by evolving legislation for decarbonisation and building safety

However, in an existing building where the lifespan of the MEP systems may be largely expended in comparison to the fabric, most of the focus of short to medium-term investment is likely to be spent on installing better operational systems rather than on the structure or fabric. These could be around 50 or 60 per cent of the overall costs and higher in more complex buildings.

Traditionally, development and maintenance teams are limited to the construction and day-to-day operation of an asset. Their technical knowledge of how buildings are made and function is, typically, focused on delivering a specific end product or setting up systems which allow assets to perform to pre-determined standards.

In recent years, the commercial as well as technical value of advisers has become clearer as the resilience of our existing building stock is challenged by evolving legislation for decarbonisation and building safety. Embracing this more strategic role means engaging engineers and surveyors at the earliest stages of acquisition or asset lifecycle planning, where their understanding of assets and awareness of potential changes in requirements is key to bridging the knowledge gap between owners鈥� strategic goals and the condition of their buildings.

In our assessment of Project Transformation, we needed to account for changing occupier needs. How could we configure floorplates for adjusted, hybrid working patterns? How could we reduce energy consumption with more efficient approaches to cooling, heating and lighting systems? How would we integrate technology, including emerging AI applications to support effective data collection?

Many clients are putting these and other questions at the heart of a more strategic approach to upgrading their assets. Increasingly, they are prepared to improve their estates in ways which go well beyond what is required by legislation or building regulations.

If time is of the essence, technical specialists are instrumental in getting the right works done at the right time

The outlook is a continued acceleration in building performance expectations. In the shorter term, we see a split in the market where high performing assets command premium tenants while those seeking to meet only current expectations are soon outpaced. This process is all the more dramatic when the standards of new developments are considered against the dated building stock that we seek to improve.

If time is of the essence, technical specialists are instrumental in getting the right works done at the right time. By prioritising strategic works over longer timescales 鈥� as opposed to partial or piecemeal upgrades between tenancies 鈥� we can plan around leases of different lengths and restructure tenant configurations to free up significant floor areas for the implementation of wider-ranging works. 

What does the future hold for our tired asset? With in-built flexibility and a wider view of opportunities in the plan, we are aiming, in the short term, for an EPC A-rating and a net zero carbon future. But most significantly, by planning refurbishments around vacant and occupied floors, we have reassessed the workspace in its entirety rather than on a selective basis.

This allows our client to undertake the upgrade of Project Transformation in a strategic, holistic way, allocating investment effectively and with clear commercial outcomes attached.

Neil Granger is senior director at property consultancy TFT