The growth of AI and an increased demand for premium workspace is impacting fit-out costs, a new report has found. Research by consultancy Turner & Townsend (T&T) said incorporating AI has led to increased demand from occupiers for “higher-quality, more amenitised and sustainable” workspaces. Its report found that London was the second most expensive city for fit-outs at £4,392 per square metre, behind New York (at £4,403). Last year London was in the top spot. It was also higher this year than Edinburgh and Glasgow at £2,886 each, followed by Manchester at £2,742. “In a digitally enabled world, the most forward businesses [...]

A significant refurbishment to a c.190,000 sq ft industrial unit in Northampton has been completed by leading fit out and refurbishment contractor Pexhurst, transforming the building into a more sustainable, efficient and community-connected industrial space through an ambitious reuse-first delivery model. The multi-million-pound project for Aviva involved upgrading the warehouse and office spaces through new M&E installations, polished concrete flooring, new finishes and repairs to existing access doors, alongside the installation of five new 22kW dual-head electric vehicle chargers. A large-scale rooftop solar PV system was also installed, comprising 678 panels and delivering a total capacity of 400kWp. The system is expected to generate around 312,000 kWh of electricity annually, saving approximately 60 tCO2e per year. [...]

The flight to better-quality offices has made London the world’s second-most expensive office fit-out market, as occupiers fight for scarce top-grade workspace. Consultant Turner & Townsend’s latest global fit-out report ranks London behind only New York, despite costs in the capital easing 1% over the last year. High-specification fit-out costs in London now stand at $5,872 (£4,397) per sq m, just behind New York at $5,886 (£4,407) per sq m. The consultant said demand for premium, highly-amenitised Grade A offices is continuing to drive fit-out budgets as firms invest in better workplaces to tempt staff back into offices and compete [...]

New office construction starts fell 35% in London in 2025, Deloitte survey shows New office construction starts fell 35% in the capital in 2025, according to Deloitte. The consultant’s latest London Office Crane Survey showed starts stood at 4.8 million sq ft in 2025, with refurbishments accounting for 66% of all new start volume. A total of 7.1 million sq ft of new office space in central London was built last year, which was up 8% on 2024 and the third highest annual volume in the survey’s 30-year history. However, its analysis points to a “more selective” development pipeline in [...]

The cost of fitting out office space around the world has risen by up to 6 percent over the past year, as geopolitical instability and growing technological demands combine to reshape corporate real estate strategies, according to new research from JLL. The firm’s 2026 Global Office Fit-Out Cost Guide, which analyses 68 cities, identifies a complex mix of factors behind the increase, including higher energy prices, supply chain disruption and ongoing shortages of skilled labour. Global benchmark costs for a medium-quality office now stand at around 2,150 dollars per square metre, reflecting sustained upward pressure despite some stabilisation in material prices [...]

Changing priorities in London office market are driving up costs Occupiers now want better, more flexible and sustainable facilities but inevitably this comes at a price, says Jayson Crosley, director at Turner & Townsend alinea The changes to the world of work that we have seen since the start of the decade are well documented. Hybrid working patterns have evolved, video and cloud technologies are now a mainstay, and shifting workplace usage patterns are enabling – or even forcing – companies to think differently about how and why they use their space. This is set against a backdrop that a [...]