Office workplace 3.0: What office tenants want in 2026 

How Small-scale commercial landlords can deliver their tenants’ needs, and let quickly…

By Tom Entwistle, LandlordZONE founder

Office design has entered what the property industry is calling, the “third era”. A recent feature in The Times described grand entrance halls, roof terraces and walls planted with greenery. This is not the foyer of a five-star hotel, but the latest in a corporate headquarters. 

But perhaps few of our readers own buildings of that stature. Nevertheless, the forces behind the Office 3.0 trend are reaching every corner of the office market in the country. Landlords of smaller and older buildings who ignore the changes risk being left behind, contemplating empty office space that nobody wants.

In my experience of renting out commercial as well as residential property, I have always found that tenants appreciate and will pay for quality. That means structurally sound buildings configured for tenants’ needs while meeting environmental standards. What has changed now is a gaping void between buildings that work for their occupiers and those that don’t. Today that gap will decide whether an office suite sits empty for 2 years or lets within weeks at premium rates.

This article is general information only and does not constitute legal, planning, tax or financial advice. Landlords should take professional advice for their own circumstances.

Destination buildings

Workplace designers now describe three eras. The first, which dominated the 20th century, was the cellular office, those with corridors of private rooms in which floor space reflected a hierarchy of seniority in a company. 

The second wave came in the early 2000s and brought open-plan and hot-desking, popularised by the Silicon Valley tech campuses. The third wave following the Covid pandemic has been labelled "Workplace 3.0", is also a response to hybrid working and now artificial intelligence.

The London design practice MoreySmith has published a report on the subject. It argues that once technology takes over routine work, the value of the office lies mostly in what can’t be done remotely. Staff relationships matter. To foster them, staff need to come together for such things as training and mentoring of junior staff, meeting each other and cross fertilising ideas, and having people work through problems together. 

The agency calls the result "destination buildings". These are places where staff choose to visit rather than where they are ordered to attend.

A new era

Business leaders agree, change is coming, even if few are ready for it. JLL's 2026 future of work survey finds that 78 per cent of landlords expect AI to drive significant changes to their property strategy. But only 31 per cent are preparing to redesign their space. 

The Times article reported JLL’s research showing collaboration (58 per cent) and culture and belonging (50 per cent) to be the main reasons people go into the office. As JLL's Sue Asprey Price told the paper, people "come for each other."

The lesson for landlords is straightforward. An office that offers nothing more than a desk and a Wi-Fi is competing with the Costa down the road or the employee's own kitchen table, and most likely losing out. 

Quality lets v tired space

The available market data bears this research out. Lambert Smith Hampton reports (Mind the Gap) that grade A space took a record 54 per cent share of office take-up across the markets it tracks in 2025, rising to 58 per cent in the first quarter of 2026. This compares to a pre-pandemic average of 46 per cent. In the South-East and Greater London, Knight Frank found that vacancies in new or comprehensively refurbished grade A buildings had fallen to 1.7 per cent, against 10.6 per cent across the whole market.

New supply is unlikely to compensate quickly. CBRE expects construction starts to remain lack-lustre, held back by investor caution, planning constraints, high build costs and the growing cost of development finance.

That environment creates an opportunity for owners of sound secondary buildings, the bread and butter of small-scale commercial landlords. Occupiers who cannot find, or cannot afford, new grade A space are looking for well-refurbished alternatives. These would fall into the "B+" category in good locations. A small-scale landlord will never be in a position to compete on equal terms with a new glass tower block with marble and roof terraces, but they can compete on readiness, flexibility, service and value.

What tenants expect

In my view, the following now make the most difference to how quickly smaller offices let, and most can be delivered without a large-scale corporate budget:

1 – It’s ready to occupy now. Businesses often don't have the traditional fit-out obligation. They want turnkey ready suites with a meeting room, kitchenette, lighting and comfortable meeting furniture in place. There are companies that provide this service to landlords but honestly a tasteful serviceable fit out should not be beyond the resources of the average landlord.

Fit-out firm Interaction has reported that occupiers are taking 15–30 per cent less office space than they did before the pandemic but they’re paying more per square foot for buildings that genuinely work for them.

2 – Flexibility is important. Shorter lease terms, break clauses for tenant security and room to expand within the same building are increasingly desirable and expected, particularly by smaller firms.

3 - Full-fibre broadband is almost essential. Good communications in today’s business environment for mobile reception and reliable Wi-Fi are now in the utilities category, simply basic requirements. 

4 – Something to impress tenants and their clients. First impressions matter. If an interior designer is what’s needed here, splash out and get the benefits. 

5 – A comfortable working environment with quiet space for focussed work. Good efficient heating with air conditioning when required, good lighting and natural light.

6 - Sharing space in a multi-occupied building can cut tenant costs and add a community feel where business occupiers can interact - a shared kitchen, or break-out areas and bookable meeting rooms allow tenants to take less private space.

7 – Good parking and other facilities for commuters such as cycle storage, showers and lockers. These cost relatively little to provide and act to widen the appeal of the space.

8 – A well-managed letting with prompt repairs and maintenance, and other service provision such as grounds maintenance and refuse clearance round off the package.

9 – Get the legals sorted with a good property solicitor and use comprehensive vetting to avoid those bad tenants in the first place – it’s always preferable to have a longer void than taking on a bad tenant.

9 – Finally, excellent marketing of the product helps attract the right tenants. Classy brochures, and working hand in hand with proactive agents will help you let space quickly.

Meeting the regulatory standards

Energy efficiency under the Minimum Energy Efficiency Standards (MEES), is a legal necessity and an added advantage for a building. It remains unlawful to let a non-domestic property in England and Wales with an EPC rating below E unless a valid exemption has been registered.

The long-trailed aim to reach EPC C by 2027 is no longer required for smaller commercial buildings. Instead, it is proposed that from 2031 all privately rented buildings over 1,000 square metres (about 10,750 sq ft) must reach EPC B (where cost-effective), while the smaller commercial buildings will remain at EPC E, with as yet no set deadline to improve. 

The seven-year payback key test and other existing exemptions will remain as at present. These latest changes require secondary legislation, and further detail is promised in a full government response, so you need to treat them with caution and keep an eye on developments. As usual, seek professional advice before acting. 

Most small scale landlords, readers of LandlordZONE will own buildings below the 1,000 square metre threshold. The changes come as good news for them, though aiming for the highest standards can pay off in other ways as evidenced above. 

Energy bills are now a big consideration for tenants and lenders and valuers increasingly downgrade poorly rated property stock. LED lighting, better heating controls and good insulation all lower tenants’ costs and improve letting prospects.

Don’t throw good money after bad

Not all office buildings can meet modern standards, either because of location or configuration. When the location is poor or the layout and energy efficiency cannot be adapted economically, an alternative use may be an option, or simply disposal of a poor investment, even at a loss, may be preferable. The money may be better invested elsewhere. 

Concluding thoughts

The office is not dead, but a poor office product is struggling if not a liability. Those who are leasing office space today are more particular in their requirements. Landlords need to think of them as customers whom they must satisfy in terms of their wants and needs must as any other retailer must. 

Large-scale landlords have the resources to answer those needs with roof gardens and concierge services, while small-scale landlords can answer them in their own way, with fast fibre broadband, a tasteful well-fitted-out suite, flexible lease terms and good attentive management. That is no longer a matter of desire, it is what the modern tenant is willing to pay for.

[Main image credit: Thirdman]