Waste in Office Fit Outs: Regulatory uncertainty and value in greener office refurbs

Across London, many office buildings are thriving. Prime spaces in sought-after locations continue to enjoy high occupancy rates, attracting top businesses with their fresh amenities, vibrant work environments, and strategic positioning in the heart of the city. These modern offices are frequently chosen by tenants looking for flexible layouts, energy-efficient systems, and spaces that support collaboration and productivity.

Yet, not all of London’s office stock is benefitting equally. There are still a number of buildings—often older or less recently updated—that appear tired and underutilised. These spaces, while full of potential, can struggle to keep pace with evolving tenant expectations and growing sustainability demands.

A thoughtfully planned, reduced-waste fit-out can transform these dated offices, breathing new life into them while keeping environmental impact and costs in check. Upgrading with a focus on reusing quality materials, modular improvements, and flexible design not only helps these buildings compete in a dynamic London market, but also positions them for long-term resilience as tenant needs and regulatory requirements continue to evolve.

For a broader look at sustainability challenges impacting London office spaces, see Sustainability in London Office Spaces: The Energy Efficiency Challenge.

Rethinking the traditional fit-out

Traditionally, office fit-outs have involved lengthy processes: multiple contractors, complex approvals, significant demolition, and a high volume of unused materials sent to waste. Increasingly, property owners and managers recognise that many of these steps can be modernised to reduce costs, waste, and overall project timescale. By considering contemporary approaches—such as incorporating modular partitions, selectively upgrading flooring, or reusing existing joinery—refurbishments can become less disruptive and more environmentally responsible. The extent to which a fit-out can be delivered in a reduced-waste manner varies with each project, but significant improvements are possible with the right planning and expertise.

How can a fit-out aim to reduce waste?

Five key areas: 

• Efficiency: Avoiding unnecessary demolition, optimising layouts for real usage, and prioritising upgrades that deliver long-term value.
• Reuse: Retaining and reusing materials such as flooring, ceilings, and partitions where possible, often under supplier buy-back or reuse arrangements. 
• Flexibility: Incorporating modular architectural features—like raised floors or reconfigurable meeting rooms—that can adapt with future tenant needs, reducing the need for further works. 
• Data-driven design: Leveraging occupancy analytics to plan layouts that reflect actual, not hypothetical, usage—minimising unnecessary construction. 
• Lifecycle costing: Assessing both environmental and financial impacts of materials across their lifespan, not just at installation. 

The benefits are substantial: WRAP UK estimates that reusing office fit-out components can save over 1.2 tonnes of CO₂ equivalent per tonne reused—a significant contribution to reducing total building emissions.

Why reduced-waste matters in commercial real estate?

Regulatory Uncertainty: EPC deadlines and commercial risk

EPC regulations for commercial properties are in flux. The interim requirement for all let commercial buildings to reach EPC C has been pushed back from 2027 to April 2028, reflecting mounting implementation challenges and sector feedback. The sector is now preparing for EPC B standards by 2030, yet compliance across the market is widely recognised as delayed reports suggest many may not reach this threshold until as late as 2040.

The lack of a formal government response to the non-domestic Minimum Energy Efficiency Standards (MEES) consultation, now delayed until the first half of 2025, is intensifying uncertainty. Landlords are left weighing whether to invest now, risking wasted upgrades, or wait for further clarity—possibly exposing themselves to market penalties and tenant churn if caught flat-footed. For guidance on planning around these requirements, see our detailed EPC compliance guide.

Strategic risks of delay

Landlords delaying fit-out or improvement works face:

• Higher upgrade costs during last-minute demand surges.
• Devaluation or void periods for sub-standard assets as the market shifts toward energy-efficient spaces.
• Liquidity risks: inefficient properties are already commanding lower values and struggling for tenant demand. 
• Potential fines of up to £150,000 for non-compliance, as well as inability to continue existing tenancies post-deadline. 

Regulatory exemptions exist in some scenarios—such as where required improvements unacceptably alter a listed building’s character—but these must be carefully assessed and are not guaranteed.

Market premiums and value creation

Despite the legislative uncertainty, demand for efficient and flexible office space is rising. Energy-efficient properties are emerging as a distinct premium asset class, commanding higher rents, stronger tenant demand, and improved liquidity. As of 2025, studies by Knight Frank, Savills, JLL confirm that operational upgrades such as HVAC and lighting improvements can deliver 15–25% rent uplifts, particularly when paired with enhanced EPC ratings. 

For an example of future-ready commercial office environments incorporating modular, flexible design, see The Future of Workspaces: Leveraging Office Pods and Modular Architecture.

What sustainable fit-outs look like: Four Leanspace partners leading the way

London’s leading sustainable fit-out specialists are efficiently showcasing how reduced-waste strategies translate into real-world projects that meet environmental, regulatory, and market demands. By blending product innovation, responsible sourcing, and transparent monitoring, they highlight what’s possible when sustainability is approached holistically:

Sketch Studios

Sketch Studios exemplifies a circular approach to office design. As a B Corp certified company, they prioritise modular, demountable furniture and adaptable meeting pods - many crafted from recycled plastics and aluminium. Initiatives such as comprehensive furniture buy-back and remanufacturing schemes help keep valuable items in circulation, while a strong commitment to upcycled materials and design for disassembly ensures future upgrades are naturally less wasteful. These practices enable clients to pursue leading environmental certifications with confidence.

Morgan Lovell

Morgan Lovell sets the benchmark for carbon-neutral, circular fit-outs, leveraging their proprietary CarboniCa software to track project carbon at every stage. CarboniCa measures whole life carbon emissions—including both embodied and operational carbon—by analysing material choices, design decisions, and product sourcing to suggest lower-carbon alternatives in real time. Morgan Lovell regularly specifies carbon-neutral carpet tiles, recycled-content ceiling tiles, and low-VOC finishes, and their projects frequently achieve certifications such as SKA Gold, BREEAM, or WELL. Their focus on biophilic features and recycling rates exceeding 90% establishes a new standard for responsible resource management in commercial refurbishment.

Bright Projects

Bright Projects deliver modular, eco-friendly workspaces focused on future flexibility. Their approach favours demountable wall and floor systems, reused carpet tiles (often reclaimed from supplier take-back programmes), and smart, energy-efficient lighting. Every project is supported by detailed waste monitoring and a strong supply chain commitment to maximising material recovery and landfill diversion—a practical model for circularity in action.

T.A. Knox

T.A. Knox places emphasis on longevity, material retention, and low-carbon choices. They upgrade and repurpose existing office assets—such as joinery, raised flooring, and partitions—whenever feasible, and when new products are required, they select carbon-neutral, cradle-to-cradle certified goods, as well as FSC-certified timber and eco-friendly finishes. Their projects are often developed around tailored sustainability briefs and can target recognised accreditations like BREEAM or SKA, ensuring that each fit-out is not only robust but also primed for future adaptability.

Together, these approaches illustrate that reduced-waste fit-outs in London are grounded in the careful selection of sustainable products, measurable initiatives like buy-back, waste recycling, and carbon tracking, and frequent alignment with leading industry certifications. This ensures both immediate and future compliance—and delivers long-term value for landlords and occupiers alike.For more on financial incentives and approaches for green office upgrades, see Green Office Benefits: Programs for a Maximum Cost Saving.

Fit-Out Finance: Enabling Change

Securing the capital for sustainable upgrades can be a barrier, especially for large or complex fit-outs. However, a range of fit-out finance solutions—such as green lending, local authority grants, and EPC-linked incentives—are now increasingly accessible for forward-thinking landlords as envisioned at the Leanspace Fit-Out Finance page. 

Targeted investments in sustainable improvements can deliver strong financial and environmental returns while ensuring compliance with evolving standards. Examples of high-impact upgrades include:  

Smart access systems (potential rent premium: £8–13 per sq ft/year)

HVAC and energy efficient upgrades(potential rent uplift: 15–25% with EPC improvements) 

• Modular furniture and plug-and-play infrastructure
• LED lighting and zone controls for instant savings and improved ratings

These upgrades support both sustainability and compliance, while boosting long-term asset value in London’s competitive office market.

For the latest on navigating EPC compliance, practical upgrade pathways, and connecting with leading sustainable fit-out partners, visit our Sustainability in Office Space Guide.

The Future of Fit Outs

Recognising that every project is unique, and sustainability goals may vary, and different projects allow for different levels of reduced-waste in fit outs. While not every refurbishment can be 100% circular, every step towards reduced waste - be it through targeted material reuse, modular upgrades, or high-efficiency systems - contributes meaningfully to long-term sustainability and crucially, property value.