Why fully fitted ‘Primed’ spaces are a smart move for landlords

In today’s economic climate, businesses are prioritising operating expenditure (OPEX) over capital expenditure (CAPEX). They want move-in-ready spaces that allow them to focus on growth rather than costly fit-outs. The increasing demand for fully fitted spaces reflects this shift, making them a key strategy for landlords looking to boost occupancy rates and rental income.  

The commercial property market is shifting as landlords face increasing pressure to fill vacancies quickly while maintaining strong rental yields. Traditionally, leasing out empty CAT A spaces meant waiting for tenants to invest in their own fit-outs, often leading to extended void periods and the need for rent-free incentives. 

Now, fully fitted, turnkey workspaces – such as Interaction’s Primed – are proving to be a more attractive and financially beneficial solution for both landlords and occupiers. 

Increasing demand for fitted spaces 

Market data highlights the rising demand for plug-and-play offices, particularly among smaller businesses and startups: 

• In Manchester, plug-and-play office rentals accounted for 18.62% of total take-up in 2023, up from 10.82% in 2022, showing a clear upward trend in demand for fully fitted spaces.

• The London market has experienced a 25% increase in demand for Cat A+ spaces over two years, covering approximately 20 million sq ft.

Businesses now expect flexible, ready-to-use workspaces that reduce downtime and enable immediate operations – but the spaces also need to be flexible and agile, easily adapted to be a perfect new home.  

The rapid adoption of fully fitted offices reflects a fundamental change in occupier preferences, making them a crucial offering for landlords. 

Faster lettings and reduced void periods

Void periods are one of the biggest concerns for landlords. Every day a space sits empty represents lost revenue. Fully fitted spaces address this issue by significantly accelerating tenant acquisition: 

• Landlords offering Cat A+ fit-outs have seen faster tenant acquisition and improved rental yields, as businesses increasingly favour move-in-ready options.

• These spaces appeal to a broader demographic, particularly startups and smaller companies that require immediate occupancy and do not have the resources for lengthy fit-outs.

For landlords, fitted spaces reduce vacancy times, attract more tenants, and generate rental income faster, making them a more profitable long-term investment. 

Financial benefits for landlords

Fully fitted spaces not only reduce voids: they also provide better financial outcomes for landlords: 

• They command higher rents due to their convenience and quality. Occupiers are willing to pay a premium for plug-and-play offices, which helps offset the initial fit-out costs.

• They eliminate the need for rent-free incentives that are typically associated with traditional CAT A leases. This allows landlords to start earning rental income from the beginning of the lease.

For landlords, investing in a Primed space means higher rental income, quicker occupancy, and fewer financial concessions, resulting in a stronger return on investment. 

Alignment with tenant expectations

Today’s businesses are looking for flexible leasing options and immediate occupancy. Hybrid working models and changing workforce expectations have reshaped office requirements: 

• Many businesses prioritise move-in-ready offices to avoid CAPEX-heavy commitments.

• Features such as utilities, and amenities like kitchens and meeting rooms make these spaces particularly attractive to small and growing companies.

Fully fitted offices cater to these expectations by providing functional, high-quality workspaces without the need for upfront investment. For landlords, this means an increased likelihood of securing long-term tenants. 

ESG and staying competitive

Sustainability and energy efficiency are becoming key factors in tenant decision-making. Fully fitted spaces provide an opportunity to incorporate energy-efficient designs and smart building technologies, aligning with modern ESG (Environmental, Social, and Governance) standards: 

• In 2023, 56% of acquired office space was rated ‘excellent’ or ‘outstanding’ by BREEAM, demonstrating the importance of ESG credentials in driving occupancy rates.

• Landlords who offer sustainable, future-proofed workspaces gain a competitive edge by attracting ESG-conscious tenants and meeting regulatory requirements.

Integrating sustainable materials, energy-efficient lighting, and smart office technologies into fitted spaces helps landlords differentiate their properties and appeal to forward-thinking businesses. 

Why landlords need to invest in Primed spaces

The commercial leasing landscape is evolving. Landlords who adapt will see the greatest returns. 

• Demand for fully fitted spaces is rising, particularly in high-growth markets like Manchester and London
• Fitted spaces let faster, reducing void periods and improving rental yields
• They eliminate rent-free incentives, allowing landlords to maximise their income
• They align with modern financial strategies, making leasing decisions easier for tenants 
• They incorporate sustainable and energy-efficient features, attracting ESG-conscious tenants

The data speaks for itself. Fully fitted spaces are a strategic advantage for landlords looking to enhance occupancy rates and profitability. 

Maximise Your Returns with Primed Spaces 

Interaction’s Primed spaces help landlords create high-quality, tenant-ready workspaces that lease quickly and generate strong financial returns. We understand what tenants want – and we deliver it at speed.  

🔹 Want to reduce voids and increase rental yields? 
🔹 Looking to future-proof your property portfolio? 
🔹 Ready to attract high-quality tenants with a move-in-ready solution? 

Get in touch with Interaction today to see how Primed spaces can transform your commercial property strategy.