The commercial property sector is entering a pivotal year. Compliance is shaping investment decisions, lease negotiations, and workplace strategies across the UK. From EPC reforms and Building Safety Act obligations to ESG reporting and carbon reduction targets, 2026 will redefine how landlords, tenants, owner occupiers, and developers operate. Add to this the ripple effects of the Autumn Budget and a challenging economic backdrop, and the message is clear: those who act early will lead.
Industry analysts predict that compliance-driven upgrades will dominate capital expenditure in 2026, with refurbishment projects outpacing new builds as businesses seek cost-effective ways to meet regulatory and sustainability goals. This shift is not just about avoiding penalties – it’s about protecting asset value and attracting talent in an increasingly ESG-conscious market.
Though there seems to be some debate as to when these minimum EPC requirements will come into force, much of the industry is working towards the following:
The Autumn Budget 2025 focused on stability, calming gilt markets and paving the way for potential interest rate cuts later in 2026. While borrowing costs remain high, refurbishment and retrofit projects are gaining traction as cost-effective strategies for compliance and sustainability. Fit out costs have risen by over 40% since 2020, making early planning essential. Working with fit out contractors to negotiate terms and value engineer workplace plans will become increasingly important to ensure that owners and occupants are getting the best value without compromising on quality.
Industry forecasts suggest that businesses prioritising compliance and ESG will outperform peers in asset resilience and tenant retention. For developers, whole-life carbon assessments and sustainable design will become non-negotiable.
Cambridge and its surrounding areas remain highly attractive for science, technology, and professional services sectors. However, older office stock faces mounting pressure to meet EPC and ESG standards. With a strong pipeline of innovation-led businesses, demand for compliant, sustainable workspaces will intensify. Landlords who invest early in energy efficiency and carbon reduction will secure competitive advantage, while tenants will increasingly prioritise green credentials in their location decisions.
Neighbouring markets such as Oxford and the wider East of England are seeing similar trends, with refurbishment projects gaining momentum as businesses seek to align with compliance and sustainability goals without the cost burden of new builds.
At COEL, we help you stay ahead of regulations while creating spaces that inspire. Our integrated approach ensures your property meets legal obligations and sustainability goals:
01 Design & Fit Out
Compliance built into every detail, from fire safety and accessibility to energy efficiency and smart building systems.
02 Furniture Solutions
Sustainable, ergonomic furniture that supports ESG goals and carbon reduction.
03 Maintenance & Upgrades
Ongoing support for EPC assessment and improvements, dilapidations, and operational carbon reduction strategies.
04 Building Safety Act Compliance
Fire strategy planning and structural integrity checks for full duty-holder compliance.
05 ESG and Carbon Reduction
Low-carbon materials, renewable-ready infrastructure, and whole-life carbon advice for developers and occupiers.
06 End-to-End Delivery
From concept to completion, we manage every step so you can focus on your business.
Frequently
Asked Questions
You risk fines up to £150,000 and restrictions on letting. COEL can help with audits and upgrade strategies.
Yes. Capital allowances and tax changes may influence your investment planning. Early action on retrofits can optimise tax benefits.
Choose spaces with strong EPC ratings and negotiate clear lease terms on upgrade responsibilities. COEL offers tailored fit-out packages to meet compliance and budget goals.
Absolutely. Whole-life carbon reporting and stricter building safety standards will shape design and construction from 2026 onward.
