Architecture firms are billing more from reconstruction and renovation projects than they are from new builds for the first time; a milestone driven by soaring demand for office renovations. In the 20 years that the AIA has been collecting data on billings for renovations versus new build projects, the share of billings received from renovations has been consistently rising for over a decade, suggesting the new milestone is not entirely attributable to the COVID-19 pandemic.

Throughout 2021, works to existing facilities reached 52% of architecture firm billings. According to AIA Chief Economist Kermit Baker, one quarter of works to existing facilities comprise adaptive reuse, with another quarter owing to conversion and basic interior modernization. 18% comprises tenant fit-outs while adding usable space and upgrading building facades or systems each comprise 10%.

“This is a long-term trend, our economy is growing slowly — a lot slower than it has in recent memory — and I think that means we don’t need new things so much as we need to reuse what we have,” Baker said in a recent AIA thought piece. “I don’t think this trend is an anomaly, and I think we are, as a country and as design and construction industries, finding that the opportunities to adapt or renovate what we already have is at least as appealing as starting anew on a site.”

Baker is skeptical about attributing this growth to pandemic-era renovations, noting that only 10% of firms’ renovation projects derived from pandemic-induced work. However, there is evidence that the pandemic will indirectly lead to a continued surge in renovations and remodeling projects for architects.

A recent CBRE survey of 185 office tenants found that 91% of respondents plan to adapt their existing office space, with 52% expecting to reduce their space, and 39% expecting to expand. For CBRE’s Global Head of Occupier Thought Leadership, Julie Whelan, an onslaught of building renovations in the office sector is being driven by landlords confronting record-high vacancy rates, who are undertaking major building upgrades to respond to shifting tenant needs.

“Office construction is falling off a cliff,” Whelan told Bisnow. “All that work going into a new build is going into renovating space now […] Our workplace strategy group, and occupancy insights group, have never been busier because of everybody trying to understand what they should be doing.” As Bisnow notes, businesses specializing in space and occupancy analytics are also experiencing high demand, with office landlords seeking to understand the impacts of newly redesigned offices on workplace performance.

For Whelan, particular design trends noted by the CBRE include more social and collaborative spaces, a reduction in the traditional one-desk-per-worker ratio, and improvements to worker comfort through air filters and health and wellness features.

According to the CBRE’s survey, the most sought-after architectural elements for tenants in their ideal offices are “flexible open space” (65%), “shared meeting space” (59%), and “space for private phone call and web meetings” (49%). The survey also found that 51% of companies expect flexible office space (i.e. shorter leases than traditional office spaces) to play a significant role in their workplace plans.