Office Investment: A Landlord View
Written by Scott Jones, founder of CommercialPropertyKiln · Last updated
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The office market has changed more than any other sector. For a landlord, the key theme is the split between the best space and the rest.
Flight to quality
Hybrid working reduced overall demand for office space, but it also concentrated demand on the best buildings: modern, well-located, energy-efficient offices with good amenities. Secondary and older offices face weaker demand, higher voids and, often, MEES pressure, because older stock is more likely to need energy works to stay lettable.
Lease trends
Occupiers increasingly want shorter, more flexible leases and fitted or serviced space. That shifts more cost and risk to landlords and puts a premium on active management.
The MEES and rates pressures
Older offices are the sector most exposed to MEES, and any EPC B by 2031 requirement for larger buildings would hit offices hardest. Business rates on prime offices also rose at the 2026 revaluation.
What it means for buyers
Prime, energy-efficient, well-let offices offer secure income but at keener yields. Secondary offices can look cheap, but factor in the cost of upgrading, the void risk and the exit. Model the yield with realistic voids and capex.
Is office investment still worth it?
The best buildings, modern, well-located and energy-efficient, let well, but secondary and older offices face weaker demand, higher voids and MEES pressure.
Why are older offices riskier?
They are the sector most exposed to MEES, and any EPC B by 2031 requirement for larger buildings would hit offices hardest.