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BCO pilots new office grading system as industry urges reform

Industry says Grade A definition no longer fit for purpose
The grading of offices needs to be changed, the BCO says. (Getty Images)
The grading of offices needs to be changed, the BCO says. (Getty Images)
CoStar News
September 3, 2025 | 9:17 AM

The UK’s office grading system is no longer fit for purpose, according to a new report from the British Council for Offices.

The report, authored by JLL for the BCO, found that fewer than 3% of respondents supported the current system, so the BCO is proposing an overhaul of how office quality is defined and measured.

The Redefining the Market: Beyond Grade A report analyses how quality is assessed and suggests a new scoring system that it says better reflects the "evolving priorities of occupiers, investors and developers in the flexible working era".

The report proposes a 100-point scoring matrix that evaluates buildings across four categories – physical quality, sustainability, technology and amenity. It says this provides a more transparent and adaptable framework.

The report finds that there is widespread dissatisfaction with current grading with 89% of survey respondents agreeing that a more robust framework would provide greater clarity and consistency.

Those respondents says sustainability is now central with 96.5% rating sustainability certifications, such as EPC, BREEAM and NABERS as essential to office quality.

New priorities are emerging with health and well-being, smart technology and tenant amenities now seen as critical components of office quality. They are often overlooked in current classifications, it finds.

It points to a new tier of quality – the concept of “super prime” office space – which is gaining traction, defined by superior environmental performance, advanced technology and premium amenities.

The research draws on input from 89 representatives across 41 organisations, including developers, agents, investors and occupiers, as well as data from more than 180 survey responses and multiple stakeholder workshops.

The proposed new BCO grading system would include a flexible matrix adaptable to both new-builds and retrofits, taking the form of a four-tier classification: Prime (more than or equal to 80 points), Grade A (50–79 points), Grade B (30–49 points) and Grade C (less than 30 points).

The criteria used cover natural light, floor-to-ceiling heights, building management systems, WiredScore rating, WELL certification, energy source, air quality and tenant amenities.

The framework has been tested on office schemes in London, Leeds, Manchester, Reading and Gloucester. The BCO says these pilot applications demonstrate that best-in-class office space is no longer confined to central London and that high-quality retrofits can compete with new-builds.

The proposed grading aims to support better decision-making, improve transparency, and align the industry with modern standards of performance and user experience.

BCO chief executive Samantha McClary said in a statement: “As demand for high-performing, sustainable and amenity-rich workplaces continues to grow, the industry needs a shared language to distinguish truly exceptional space. The proposed framework supports the market’s flight to quality and provides clarity for investors, developers and tenants alike. It’s about creating offices that deliver long-term value – for people, for performance and for the planet.”

Elaine Rossall, report author and JLL head of offices research, added: “Office market standards and occupier expectations have evolved since the pandemic. While traditional physical characteristics remain important, there has been a shift towards emphasising building performance and user experience, and it was encouraging to see that there was a strong recognition and a consensus for change from across a broad cross section of stakeholders. This is key for industry adoption and to ensure relevance over the longer term.”

The BCO is now calling for more feedback from both its members and the wider office community on the proposed new grading system.

The report can be accessed HERE. To share your views, email mail@bco.org.uk

The British Council for Offices' mission is to research, develop and communicate best practice in all aspects of the office sector. Its members are all organisations involved in creating, acquiring, or occupying office space, whether architects, lawyers, surveyors, financial institutions or public agencies.

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News | BCO pilots new office grading system as industry urges reform