The future of the office

At this year's London Real Estate Forum (LREF), Sir Robert McAlpine hosted a panel discussion titled, 'The future of the office, looking beyond the current challenges.' Our Sustainability Director and Digital Construction Director now share their perspective on the topic.

In the wake of LREF, Simon Richards, Sustainability Director, and Nick Leach, Director of Digital Construction, discuss how the challenges facing commercial real estate will likely evolve, addressing the ever-changing landscape of sustainability requirements and the role played by AI and digital construction in shaping this vision of a future office. Nick and Simon set out to explain the ways in which these drivers of innovation can satisfy the demands of modern occupiers.

Sustainability at the forefront

Simon sets out the state of play straight away: "The first question to consider is whether there will even be an 'office' in the future." The work-from-home culture of the pandemic has not yet fully subsided, even with return to office mandates, and many are simply choosing not to commute. It's an ongoing debate, but Simon responds: "The short answer is yes, there will be - but they will be dynamic spaces, adaptable to the demands and expectations of their tenants."

The role and nature of the office is already transforming. As sustainability requirements evolve and society becomes increasingly conscious of sustainability, many offices today have fallen behind, no longer drawing the same commercial pull as complex new builds. To make use of these stranded assets, retrofit and repurposing projects are essential. "The future market share of retrofitting and refurbishment projects will increase. Project carbon targets and a push for circular economy solutions means that demolishing and starting over from scratch is not always possible," Simon shares.

This desire to achieve net zero is reflected in industry-wide sustainability ratings. "The current best practice of the elite commercial projects, whether BREEAM Outstanding or NABERS 5*, is rapidly becoming the industry standard," says Simon. "We are seeing a clear shift towards making offices - and commercial buildings more widely - as sustainable as possible." Sir Robert McAlpine's work on 3 Chamberlain Square in Birmingham, for example, may be a sign of what's to come: one of the UK's most sustainable buildings, the project utilises innovations such as biophilic design to ensure that emissions are as low as possible throughout its lifespan and it recently achieved BREEAM Outstanding accreditation with a verified embodied carbon figure of 4479 kgCO₂e/m².

The era of the smart building

AI and technological advancements, alongside sustainability, are another critical driver in the progression of the office. Nick makes clear that the market "has remained strong for sophisticated, high-spec offices, equipped with top-of-the-range tech such as AI-driven Building Management Systems." How can we divert this demand to solving the stranded assets problem facing offices? A greater sense of collaboration and 'partnership', which was the theme of this year's forum, must infiltrate the office sector. Nick suggests some solutions: "shared building spaces may provide businesses with the access to advanced retrofitted or repurposed buildings they might otherwise not be able to secure." There is also a wider commercial benefit: "This could also foster opportunities and collaboration across sectors sharing the same space."

The role of a commercial building, too, is changing: as climate concerns grow, Simon details the increased importance of buildings as a mitigating solution. "Buildings may, in time, serve as a carbon sink using materials like algae and moss, taking their place in a circular economy and reusing materials to the wider benefit of an industry that has historically had a large proportion of carbon emissions."

AI and digital construction

Digital construction also has a part to play in shaping the future of commercial sector construction and furthering sustainability ambitions. One such example is the use of digital passports; a technology pioneered by McAlpine with British Land on 1 Broadgate, making it the first large-scale project to do so.

The passports provide data that enables materials to be reused and repurposed, helping to foster a circular economy while cutting down on waste and carbon emissions. The approach shows significant promise: when the original 1 Broadgate building was demolished, 27% of its materials were recovered and either integrated into the new structure or reused elsewhere. While there is more work to be done into making these practices the norm, Nick shares the team is "proud to have taken the first steps in implementing such an innovative process."

AI, too, presents vast opportunities for the commercial sector. Nick explains: "on top of streamlining the processes that make technological and engineering excellence possible, AI can add an extra level of perception and customised experience to an office that is expected from today's workforce." The potential benefits for end-user experience are manifold: "using data from employee surveys, or energy efficiency output of a building, AI can personalise the office experience to the benefit of employee wellbeing or sustainability. For example, controlling temperatures and airflow according to peak time, or ensuring that tenants' coffees are delivered at their preferred hours." It is this personalisation that Nick sees as emblematic of future tenants' demands of an office space.

The use of AI and technology must come with a wider attitude of promoting education and upskilling, however, so that advancement is seen industry-wide rather than in siloed pockets of innovation, Nick caveats.

Collaboration the key to unlocking the future

To finish, Nick and Simon reflect on what can be done now in pursuit of a sustainable future for commercial real estate. The future of the office will be defined by sustainability, digital innovation, and AI-driven design - but success depends on more than technology alone. To meet net zero targets and reimagine stranded assets, the commercial real estate sector must embrace proactive, industry-wide collaboration. Only by working together can we create resilient, low-carbon offices that meet the demands of tomorrow's occupiers.