Let’s start with the uncomfortable truth: if you want to occupy a highly sustainable office, you will struggle to find one outside London and a handful of the UK’s largest cities.

Samantha McClary

A few exemplar projects may point the way, but they can’t close what is a widening gap.

The BCO’s ‘Viability and Sustainability in the Regions’ report shows that while the ‘big six’ regional cities (Birmingham, Bristol, Edinburgh, Glasgow, Leeds and Manchester) average 19 highly sustainable office buildings, smaller but economically vital cities like Exeter, Newcastle and Sheffield average just three. Even proportionally the gap persists: five to six sustainable offices per million square metres versus around 11 in the big six.

With Minimum Energy Efficiency Standards tightening towards EPC ‘B’ by 2030, energy costs going up and scope 3 reporting dragging operational performance into the spotlight, buildings that can’t clear the bar will become economically obsolete. In smaller cities, the risk compounds. With fewer viable options for businesses, we face more pressure on local employment hubs and rising odds of sustainability gentrification, where the ability to meet green thresholds concentrates in wealthier markets, marginalising others.

The culprits are familiar, but worth spelling out. Construction costs don’t vary wildly across the UK, but headline rents do: £23/sq ft in Exeter versus £50/sq ft in Bristol, according to the report. Stakeholder feedback points to £23/sq ft as the minimum to support significant refurbishment and £33/sq ft for new build. Exeter hasn’t seen a new city centre office built for over two decades: the numbers just don’t stack up without external support.

Layer on the occupier profile: big-six markets host more corporates with portfolio-wide ESG mandates and stronger covenants; smaller cities see fewer of those requirements and, as a result, fewer projects that can carry the upfront cost of higher performance and accreditation.

We’ve spent a decade equating ‘sustainability’ with ‘prime’ and ‘new build’, but this is inaccurate and counterproductive. From an embodied carbon perspective, the most sustainable office is the one already standing and occupied. But certification systems, valuable in some ways, can be too complex, costly and too focused on potential rather than operational performance for regional markets.

Connection: Newcastle’s Helix demonstrates the leverage in public-private university partnerships

We need to be rating a building on what it actually does in use, not what the brochure says it might. If you want occupiers to pay for sustainability, give them energy intensity, demand profiles and cost savings they can bank.

Thankfully, there are strong examples of initiatives across smaller regional cities. Exeter’s Broadwalk House is a smart, flexible refurbishment anchored by Clockwise flex space; Newcastle’s Helix demonstrates the leverage in public-private university partnerships; and Sheffield’s Heart of the City proves district-level investment in public realm can move rents, occupier sentiment and sustainability expectations together. The common thread? Pragmatic, place-based strategies that connect viability to performance.

The report recommends adopting a city office portfolio approach and SPACE (sustainable property and commercial engagement) groups. Treat a city’s office stock like a portfolio: map performance, prioritise upgrades, align stakeholders and sequence investment so upgrades happen where they’re viable and benefits are shared. Build local capability so that ‘retrofit first’ is standard practice.

The right retrofit, timed with lifecycle maintenance, can be cheaper than a tear-down, and once you price in regulatory risk, downtime and financing conditions, it frequently is. Ignore that reality and watch sustainability become a driver of office inequality, accelerating obsolescence in smaller cities and pushing employers towards the few places that can meet their needs.

The fix isn’t complicated, but it is hard work. Measure in-use performance, not just intent. Consider retrofit first. Incentivise the right behaviours. Build city-wide strategies. Do that, and regional office markets can stay investible and relevant in a world where sustainability isn’t optional.

Samantha McClary is chief executive of the British Council for Offices (BCO)