The New HQ

Facing the realities of hybrid working

While working from home has become the “new normal”, an increasingly vocal number of employers have called for a return to the office. However, this is not all employer-driven. A new generation of workers is challenging the post-pandemic hangover, seeking the benefits of urban living and sense of community that come with regular in person attendance in the office. Recent moves by major organisations reflect this shift. Firms including Deutsche Bank, Panmure Liberum and UBS have tightened their hybrid policies and industry data shows that around 15% of UK companies have increased mandatory office days since first introducing hybrid working.

It is no longer possible for an organisation simply to move offices and expect employees to follow. Employers must respond to the competing demands of a workforce that remains divided on the “work from home” front. Hybrid-friendly office layouts that provide quiet spaces for calls, areas for collaboration and adaptable zones are now part of a broader trend in headquarters design, reflecting the interplay between evolving working patterns and the spaces that support them.

Changing workforce expectations

In 2026, premium amenities are now a baseline expectation in a competitive market. The employee experience is an area of increasing focus for employers as they aim to attract fresh talent and boost office attendance. Part of this change entails the design of quality spaces, offering benefits such as gyms, medical facilities and hotel style “end of trip” facilities.

As well as expanding floor space, reevaluating current utilisation of office space is vital in responding to workers’ changing needs. Biophilic design improves employee wellbeing and productivity by integrating plants, natural light and organic textures and continues to be a feature of HQ regeneration.

ESG priorities on the rise

Satisfying ESG requirements has worked its way up the agenda for occupiers as well as landowners, no longer just a compliance issue – ESG can also be a reputation and financial imperative that is making it a frequent discussion for boardrooms. The built environment accounts for at least 25% of the UK’s greenhouse gas emissions, a figure that is often overlooked. As the UK moves closer to its net zero target, ESG considerations have become a defining influence on headquarters design.

Given the growth of the UK green finance market, corporates are incentivised not only politically, but also fiscally to meet ESG goals. As climate risk becomes embedded in valuations and lending criteria, compliance offers clear advantages, while failure to act could leave organisations behind. Businesses looking to stay ahead are increasingly carrying out early building performance assessments, setting clear sustainability criteria at the heads of terms stage and using data tools to monitor and evidence progress over the life of the lease.

Recent headquarters moves highlight both the growing importance of sustainable practice and the opportunity for law firms to distinguish themselves from competitors. Office moves have been accompanied by public commitments to achieving Building Research Establishment Environmental Assessment Methodology (BREEAM) Outstanding, Well Platinum and NABERS 5* ratings – internationally recognised certifications of ESG compliance. Where a building commands exceptional sustainability credentials, its liquidity in the market is significantly enhanced. Without these benchmarks, some real estate funds will simply not engage.

Occupiers are now ensuring these standards form part of lease negotiations and are prepared to share in the cost, as ESG performance is closely tied to a firm’s reputation. For almost half of UK office workers, ESG considerations influence where they choose to work, underscoring the link between employee expectations and the evolution of headquarters design.

Leveraging digital transformation in the workplace

With changing employee expectations around amenities, flexible working and a stronger focus on climate-aligned standards, the rise of property technologies, “proptech” and AI could not be more timely. AI can now analyse vast volumes of data to optimise space utilisation and better meet workforce needs.

Proptech are being deployed to optimise building performance and advance long-term net zero goals. Yet this sits against a growing tension for organisations, as the rapid expansion of AI across operations is increasing energy demand and raising questions about whether its adoption could, in some cases, conflict with decarbonisation goals. One emerging application is digital twin technology, a virtual replica of a building that updates in real time using live data. By simulating different scenarios, digital twins enable firms to optimise layouts, anticipate maintenance needs and improve energy efficiency before changes are implemented.

HQ strategy redefined

Headquarters once served as a clear symbol of corporate status. That certainty has been unsettled as patterns of work evolved and expectations shifted. Its identity is now shaped by employees, sustainability imperatives and technology, becoming a flexible, data-driven environment rather than a static emblem of prestige.

Far from disappearing, the office continues to adapt. Vacancy rates in London have risen close to the ten-year average, but demand persists for well-located, high-quality space with advanced connectivity. Yet older stock faces obsolescence for failing to meet energy and functionality standards, and continual reinvention will be critical in order to meet evolving standards.

Previous reports of the death of the office appear contrary to the current narrative of its rebirth. The corporate office is not dying; it is being reinvented. Organisations that proactively adapt their HQ strategies in 2026 will be best placed to attract talent, improve productivity and culture, and meet the demands of a changing environment.