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The extraordinary expansion of data centres around North America and the world is well-reported. Even so, the growth of commercial construction is expected to be modest in 2026 after several years of rapid expansion in almost every corner of the world.

Even in the Middle East, John McAslan, founder of international architecture and design practice John McAslan + Partners, speaks of the need to pause his company’s expansion into Saudi Arabia.

“I don’t think (Riyadh) is the place necessarily at this point, maybe in a few years”, he said, commenting on the widely reported downturn in development work in that country.

The United Kingdom is no exception to this trend. Last year was challenging for the construction industry, and Zander Muego, director at Thomas & Adamson growth in the U.K. construction market in 2026 will be limited to around two or three per cent.

Muego says commercial building challenges such as rising construction and financing costs continue even when planning permission for a new build is granted. These are causing developers to instead consider the repurposing of existing structures.

Muego has faith in the refurbishment of older and underutilized buildings, something in which the British have demonstrated great competence. These can hold greater potential for strong returns, viability and efficiency.

“As the value of secondary office stock declines, conversion is becoming increasingly appealing as a way to add value and bring otherwise redundant built assets back to life.

“Making better use of existing buildings remains a defining theme in 2026,” Muego continues. “Policy drivers around embodied carbon, combined with tighter market conditions, are prompting more developers to refurbish or repurpose existing assets rather than deliver full new-build schemes.”

Perhaps there is no better example of the U.K.’s focus on refurbishment than the retrofitting of Pall Mall Court in Manchester’s city centre.

The 85,000p-square-foot modernist office block of three interlinked towers was completed in 1968. However, it was used for the storage of cardboard boxes for almost four years and was at risk of becoming a stranded asset before being acquired by the family-owned property company in 2021.

A whole life carbon assessment was carried out to compare the cost and potential returns of retrofitting Pall Mall Court versus other alternative scenarios such as its complete replacement as a new build.

Analysis also projected a rental value uplift as a result of a retrofit, from £12 to £15 to £35 to £37 per square foot, representing an excellent return on the estimated £25 million (CDN$46.2 million) cost. That triggered the decision to undertake a deep retrofit under the guidance of U.K. architects Sheppard Robson MEP & Sustainability, a firm that prides itself on .����

Pall Mall Court’s bold and unique Z-shaped layout and tiered structure was recognized in 2000 by the . Honouring this, the retrofit project team has recreated the building’s distinctive dark bronze-coloured façade cladding connected by new cladding joints made by 3D printers. The windows have been replaced by energy-efficient lookalikes.

Together, these will help improve the building’s airtightness and energy efficiency, a weak spot revealed by the whole life carbon assessment. The building’s energy demand is now predicted to achieve a 74 per cent reduction in Energy Use Intensity (EUI), an EPC rating from G to A, and a BREEAM “Very Good” rating.

to the U.K. Green Building Council, net-zero operation with low energy consumption was the key sustainability target for Pall Mall Court. All electricity supplied to the building is to be derived from renewable sources optimized by intelligent building management technology.

“A switch from gas heating to hybrid variable refrigerant flow, with an air source heat pump serving domestic hot water and air handling unit coils will dramatically reduce the overall carbon emissions and set the building on a trajectory for zero carbon as the grid emissions reduce.”

However, several upgrades were added to Pall Mall Court’s street presentation. The entrance was moved to the rear of the complex in order to incorporate a generous plaza with an outdoor piazza and covered terrace in a previously unused area as well as café and retail space along the building’s frontage.

Inside, a mid-century look has been created using timbers, natural finishes and warm shades. Tenant features include a gym, wellness studio, changing rooms, cycle storage, conference pods, meeting rooms, a co-working lounge and a screening room.

“The redeveloped workspace, set across three interconnected towers and reaching 12 floors, will include leased, serviced and co-working space,” Bruntwood, “providing opportunities for high-growth businesses to adapt as they grow, and offer a variety of flexible workspaces for large businesses dependent on their needs – either longer term leases, or more flexible, all-inclusive serviced spaces.”

Now accepting tenants, Pall Mall Court is the latest demonstration of repurposing success in the U.K. and sets an example for other cities.

John Bleasby is a freelance writer. Send comments and Climate and Construction column ideas to editor@dailycommercialnews.com.