Developers have spent nearly £3.5 billion buying unloved office blocks across the UK over the past three years — but not to keep them as workplaces.
Instead, these often outdated properties are being transformed into hotels, homes, labs and student accommodation, as demand for traditional office space continues to shift post-pandemic.
According to new figures from property consultancy CBRE, between 2022 and 2024, developers bought 5.9 million sq ft of office space — roughly equivalent to 12 Gherkin buildings — specifically for conversion into alternative uses. The trend reflects a significant reconfiguration of the UK’s commercial property market, where “secondary” office space is being reimagined to meet demand in other high-growth sectors.
“There is a significant shift in the UK real estate landscape,” said Colin Thomasson, head of UK investment properties at CBRE. “Repurposing secondary office assets into vibrant, multifaceted spaces where office demand is weaker, or where there’s a demand-supply imbalance for other asset types such as residential or life sciences, is a viable solution.”
These conversions are not a one-size-fits-all proposition. Instead, developers are tailoring their plans to local market needs. In regional cities such as Bristol, Leeds and Glasgow, the dominant conversion type is residential, with demand for city-centre living continuing to outstrip supply.
In Edinburgh, the focus is squarely on hotels, as tourism bounces back post-Covid. There, five office buildings have been sold for conversion since 2022, including Capital House, which was acquired by Premier Inn-owner Whitbread. The company has submitted plans for a £21 million redevelopment, adding to its growing strategy of repositioning office assets in key tourism hubs. Whitbread has also been active in London, where it purchased a City office block in 2023 for £56.5 million, again for hotel conversion.
In Birmingham, the dominant trend has been education-related redevelopment. Aston University made headlines last year when it bought the former Birmingham City Council headquarters for £25 million, with plans to convert the site into new facilities for its business, law, and science schools.
In the so-called “Golden Triangle” of London, Cambridge, and Oxford, where life sciences real estate is in high demand, developers are turning old offices into laboratories. These cities are grappling with a critical shortage of lab space as biotech and research firms look to scale. The conversion of offices into life sciences hubs is a fast-growing niche, driven by private equity and institutional investment into the UK’s innovation economy.
The shift away from traditional office space began during the pandemic and has only accelerated. As companies seek modern, sustainable, and centrally located office space to attract and retain talent, demand has shifted toward prime, grade-A buildings. This has left a glut of “secondary” office stock — typically older, less energy-efficient, and in less desirable locations — sitting vacant.
“The ability to source and secure grade-A office space is acutely difficult for occupiers,” said Simon Brown, head of UK office research at CBRE. “Building quality and location are of the highest priority. As such, secondary office space presents opportunities for those that are happy to refurbish, as opposed to build from scratch.”
While some developers are choosing to convert offices entirely, others are choosing to upgrade and modernise these buildings, bringing them up to standard to compete with new developments — especially as the cost of new construction rises.
CBRE’s data highlights a growing divide in the office market: between new, ESG-compliant buildings that are in high demand, and ageing stock that no longer meets occupiers’ expectations — but offers fresh opportunity for those willing to adapt.
The billions of pounds being invested into repurposing and repositioning secondary offices across the UK is a clear indication that the commercial property market is evolving, with developers, institutions and universities seizing the opportunity to reshape urban real estate for a new era.
Whether it’s student housing in Glasgow, hotels in Edinburgh, labs in Cambridge or new homes in Leeds, Britain’s unwanted office blocks are getting a second lease of life — just not as offices.
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Developers have spent £3.5 billion buying unloved office blocks across the UK in the past 3 years