When we reopened the doors of the 175-year-old office building at 20 Rue de la Banque in Paris’ 2nd arrondissement, the scent of freshly installed timber and lime plaster still lingered in the air.
Behind its elegant Haussmann façade and historic staircase, visitors discovered bright, modern workspaces equipped with efficient new technology.
Shortly after completion, ANJAC Health & Beauty signed a nine-year lease for the entire office area.
This outcome reflects a principle that has guided AM ALPHA since 2006: real value is created when existing assets are thoughtfully improved and remain relevant over the long term.
It is not an isolated case, but part of a broader trend. Companies are increasingly drawn to places that convey identity, appeal to the senses and at the same time perform both technically and environmentally.
Since the pandemic, the office debate has shifted fundamentally. The question is no longer whether offices are needed, but instead which offices work. This is true not only in Paris. Quality, ESG alignment and speed to market are increasingly outperforming growth at any cost.
This is a rational investment decision.
In London, 83% of all new offices created in the first half of 2025 were refurbishments rather than new developments.
Why Long-Term Value Starts with What Already Exists
The renewed appeal of existing buildings is driven by three interlinked factors, namely environmental, technical and economic.
First comes the climate equation. According to the UK Green Building Council, commercial buildings account for 23% of the CO₂ emissions of the UK’s entire building stock. Without refurbishment, net-zero targets remain out of reach. Thorough retrofits can reduce operational energy demand by up to two-thirds and enable a shift away from fossil fuels. The debate around the former M&S flagship on Oxford Street is a classic example: the demolition and construction were estimated to emit an additional 40,000 tonnes of CO₂. The conclusion is clear – the most sustainable building is usually the one that already exists, provided it is renovated with care and expertise.
From ESG Compliance to Differentiated Products
The second factor is product differentiation. Companies competing for talent need more than functional floorplans. Heritage buildings offer character and history – in short, an identity. Our project at 3–5 Rue Plaetis in Luxembourg’s Grund district is a good example of this. It was a fully refurbished listed office building, with around 3,500 square metres of lettable space. Before it was successfully sold, it was on a long-term lease to a prime tenant. Through intelligent refurbishment, heritage assets can evolve into liquid core products.
The third factor is location. Many historic properties occupy prime urban sites – exactly where talent, clients and infrastructure converge. The 130-year-old Helmerhus on Copenhagen’s City Hall Square is a case in point. Its transformation will deliver around 15,000 square metres of premium office space and 3,000 square metres of retail and restaurant areas. The mixed-use concept fosters urban vibrancy while generating attractive and resilient cash flows.
The same logic applies in Manchester, where we are redeveloping the historic Rylands Building. The ground floor has already been pre-let to Market Place Food Halls on a 15-year lease, signed two years before the completion of the works. Early demand is often the strongest proof that character, quality and location really matter.
Returning Real Value Meaningfully
The takeaway is straightforward: ESG only works as a business case – not as an afterthought. Successful repositioning means going green: prioritising building fabric and systems, electrifying heating and cooling and delivering measurable efficiency gains. At the same time, every property needs a narrative. Tenants do not lease kilowatt-hours or grams of CO₂ reduction; they choose meaning – the location, the spatial quality and the identity of a building. The transformation of 20 Rue de la Banque shows how a value-add investment can mature into a fully let, long-term core asset.
Resilience in heritage real estate is further strengthened through mixed-use programming. Active ground floors combined with flexible office concepts on the upper floors support long-term vibrancy and a stable income. Early collaboration with future tenants also enhances pre-leasing and lease duration, as demonstrated by the Market Place agreement in Manchester.
The direction of travel is clear. People are looking for lower emissions, stronger character and reactivated city centres. The next value cycle in the office market will not be driven by more glass, steel and concrete, but by intelligent refurbishment. For long-term investors this represents a compelling opportunity to combine ESG impact, resilient income, and lasting relevance. In other words, returning real value over time.
