Although, on the surface, stranded asset risk presents more investment complexity — especially for larger office buildings that are trickier to refurbish viably — it also provides an exciting opportunity for investors. In fact, now is an opportune time for those with capital and the right skill set to step in and transform well-located “brown” offices in many major European cities into future-proof, high-quality workspaces in what are now termed brown-to-green investment strategies.
On the demand side, there is strong occupier appetite for high-quality workplaces underpinned by excellent connectivity in amenity-rich locations where buzzing mixes of bars, restaurants, retail and theatres surround them. Vacancy rates for top-quality London offices fell by 20 percent year-on-year in the third quarter of 2024 as demand increased from businesses seeking environmentally compliant, ESG-led and overall better space. The picture is similar across Europe — in Milan, more than
