July 15, 2025
The UK’s office market is making steady progress toward sustainability, but the pace remains too slow to meet looming regulatory deadlines, according to new research released by Carter Jonas.
The “Taking Stock: UK Office Sustainability Challenge 2025” report provides a comprehensive analysis of over 120,000 office buildings nationwide, assessing their energy performance, age, quality, and sustainability credentials. Despite some positive signs, including a near 6% rise in top-rated energy performance certificates (EPC A-C), the majority of the UK’s office space remains at risk of non-compliance with proposed Minimum Energy Efficiency Standards (MEES) set to come into force by 2027 and 2030.
“The report shows we’re heading in the right direction, but progress is far too slow,” said Richard Love, Head of Commercial Consultancy, Carter Jonas. “While top-tier offices are setting new sustainability standards, most of the stock continues to fall short. We urgently need to scale up retrofits and rethink how we deal with ageing buildings, or we risk leaving parts of the market and whole communities behind.”
The key findings of the research are:
- EPC Improvements: The proportion of F and G-rated office buildings has fallen from 17.2% to 14.1% since 2023, while A–C rated buildings now account for nearly 38% of the stock. However, almost two-thirds of office space remains below the proposed 2027 MEES threshold.
- Ageing Stock: Over 50% of UK office floorspace is in buildings constructed before 1990, highlighting significant retrofit demand.
- Quality Gap: Mid-quality (Class 2) offices account for more than half of all stock, with lower-quality (Class 3) space making up 18%, especially concentrated in regional centres.
- Sustainability Credentials: BREEAM certifications are rising but remain largely confined to new or recently refurbished buildings, with ‘Outstanding’ ratings still rare at just 2.7% of certified stock.
The report warns that without urgent capital expenditure, many older and lower-quality offices face a future of declining value, rising vacancies, and operational obsolescence. In regional markets, which suffer traditionally from weaker investor and occupier demand, this could accelerate urban decline unless proactive measures — including repurposing and targeted financial incentives — are implemented.
“Investors and lenders will increasingly prioritise assets with clear pathways to regulatory alignment,” added Mr Love, Head of Commercial Consultancy at Carter Jonas. “The next five years are critical. Without action, the cost of doing nothing will quickly overtake the cost of futureproofing.”
“We call for a joined-up approach combining planning flexibility, private sector investment, and targeted public support to help futureproof the UK’s office stock and support vibrant, sustainable urban centres.”
