Boom in fit-out work set to keep contractors busy indoors

The key role of fit-out for offices and public buildings is emerging as one of the most promising sources of new work for contractors in 2026.

An upturn in the sector is being led by growing demand for high-quality space, energy efficiency needs, and a rising number of lease renewals, particularly in London and other major cities.

A recent report, Office fit out trends for 2026, from Overbury – a leading contractor in the sector – points to a “flight to quality” as employers seek Grade A office space to retain and attract talent as a key driver of activity in the sector. Meanwhile, landlords are upgrading older Grade B buildings to meet occupier expectations.

“The year ahead will see a surge in Grade B to Grade A transformations, as refurbishment becomes a faster and more sustainable route than new development,” notes the report. High standards in lighting, air quality, connectivity, and wellbeing are now seen as the ‘baseline rather than a luxury’.

Both the office and education sectors – which each account for significant shares of the fit-out market – are poised for further expansion this year, according to the latest Glenigan Construction Industry Forecast 2026-27.

Upbeat trading

In an upbeat trading statement earlier this month, Overbury’s parent company, Morgan Sindall, highlighted the buoyant conditions in the fit-out market. It said: “…since the start of the year, confidence levels have increased concerning the conversion of preferred bidder work and future tender opportunities for the Fit Out division…” Profits at its fit-out business this year are now set to be ‘significantly ahead of expectations’.

Meanwhile, the order book at the group’s two fit-out businesses – Morgan Lovell and Overbury – grew to £1.6 billion by the end of last August, up 8% since the start of the year and with work worth £900 million booked for 2026.

Glenigan data shows Overbury is the fit-out contractor on one of the largest office refurbs set to get underway in London this year, a £75 million office fit-out at the M Building in Oxford Street for accountants BDO UK. Work on the scheme is set to start in June and run for eight months (Project ID: 26043020).

Meanwhile, Morgan Lovell, which provides full fit-out solutions from concept to handover, has recently been appointed main contractor on a £7 million office fit-out at Old Broad Street in the City. Work on the Category B (where the interior is specified for the tenant) fit-out project is due to start in late spring this year and run for eight months (Project ID: 26041654).

Fit-out contract opportunities

Glenigan data highlights numerous other current opportunities on fit-out contracts of varying sizes and across different regions.

In the North West, work is set to start this month on a major public sector project; the £38.2 million Manchester First Street Fit Out (pictured) involving the internal construction of a new government hub for some 2,500 civil servants. Wates Construction is the contractor on the Cat B project, where work is set to run for nine months (Project ID: 25147097).

In Leatherhead, Surrey, tenders have recently been returned for a £7 million office fit-out for Unilever plc, involving a strip-out of an existing tenant fit-out back to a landlord shell. Work on the scheme is set to start this spring and run for six months (Project ID: 25561164).

The leisure & creative sector is also providing opportunities for fit-out contractors. Tenders have recently been invited for a £71.5 million design & build contract on a music studio fit-out for the BBC at the broadcaster’s East Bank Development in Stratford.

Work on the scheme, involving three studios with control rooms, visualisation rooms, workshops, and an edit suite, is due to start at the end of this year and run for 18 months (Project ID: 25616001).