Office construction set to occupy a prime space in 2026

Office construction stands out as one of the most promising sectors for businesses seeking new contracts in 2026.

After some lean times in the sector in recent years, the upturn which started in 2025 is set to continue into this year as work starts on a multitude of office projects across the regions – particularly on refurbs – and in London.

Indeed, Glenigan data on the Top 100 contracts across all sectors where work is set to start this year shows that 23 projects – worth a combined £6.3 billion – involve office projects.

The brighter outlook across the whole of the office sector is reflected in the latest Glenigan Construction Industry Forecast 2026-27. This predicts that after a 16% rise in the value of underlying (under £100m) office project starts in 2025, a further 13% growth is expected this year and an additional 2% in 2027.

The recent drivers of office construction – the return to office working, the strong demand for prime Grade A space, and the expansion of data centre capacity – are set to remain in force this year and next.

Refurbs in the regions

According to a recent report on the regional office sector from property agents LSH, the main opportunity for developers to boost the supply of prime space is through refurbs of relatively modern office buildings built between 2000 and 2015.

These can be upgraded at lower cost – typically at £100-200 per sq ft and within six months – with improvements such as new HVAC systems, full electrification and features such as roof terraces, café/bars and showers which companies nowadays deem necessary to attract and retain employees.

Examples of such projects are already emerging. They include 3 Rivergate, at Temple Quay in Bristol where, following a recent refurb of 75,000 sq ft of space over a ground floor and six upper floors, asking rents have increased to £45 per sq ft from £28 previously.

In all, LSH has identified 8 million sq ft of office stock in 12 key regional centres built between 2000-2015 which is ripe for this form of refurb. Regional cities offering good opportunities include Manchester (with 1.2 m sq ft of such space), Bristol (1.1 m sq ft), Birmingham (just over 1m sq ft) and Edinburgh (nearly 600,000 sq ft). Other smaller centres such as Exeter and Belfast also offer potential in this area.

One major regional refurb project highlighted in Glenigan data where work has started in recent weeks is a £34 million office fit out in Manchester at 4 Angel Square. The scheme includes new showers, a ground floor gym, theatre, reception and café and the project is set for completion late this coming summer (Project ID: 25564022).

Opportunities in the Square Mile

Meanwhile, the City of London office sector also offers opportunities for new work as developers press ahead with larger schemes to meet strong demand for Grade A prime office space from the financial & legal sectors.

Tenders are due to be invited early this year after planning permission was recently granted for a £300 million office development at 130 Fenchurch Street. It involves demolition work and the construction of a new building with three basement levels and 34 storeys to create around 57,000 sq m of new space. Work is due to start this summer and run for 39 months. (Project ID: 14252496).

Meanwhile, at 60 Gracechurch Street in the City (pictured), work on a £330 million, 36-storey tower, where Bovis is the main contractor, is pencilled in to start this spring and run for 36 months (Project ID: 24112367).

At nearby 85 Gracechurch Street, detailed plans have been granted, and Mace Group appointed as the preferred bidder as the construction manager for a £131 million office scheme where work is set to start in the autumn (Project ID: 22276673).

And after planning approval was recently granted, work is due to start on the huge £477 million office tower at 99 Bishopsgate in the early autumn. Multiplex Construction Europe is construction advisor on the scheme which involves a market hall and community space on the ground floor with some 53 storeys above (Project ID: 23331236).

Other major office schemes in the pipeline in the Square Mile, where detailed plans have been granted, include the £500 million Camomile Park project at 63 St Mary Axe, where work could start early next year (Project ID: 24138635).

Elsewhere, demolition is continuing ahead of construction work starting in spring next year on developer Stanhope’s £510 million office & retail/museum scheme at 1 Undershaft – The Trellis (Project ID: 15014016).