In the heart of London’s evolving commercial real estate landscape, Nick Millican, CEO of Greycoat Real Estate, is pioneering a transformative approach to urban development.
As the industry undergoes unprecedented changes driven by post-pandemic work patterns, environmental regulations, and shifting tenant expectations, Millican’s leadership is forging a path that challenges traditional development paradigms and embraces sustainability as a core business strategy.
The Carbon Case for Refurbishment
“The most sustainable building is often the one that already exists,” Nick Millican emphasizes, highlighting a fundamental truth that has become central to Greycoat’s development philosophy. Under his guidance, the company has made refurbishment—rather than demolition and rebuilding—the cornerstone of their approach to property development.
The rationale is compelling: the construction industry accounts for nearly 40% of global carbon emissions when considering both operational energy use and the embodied carbon in materials. When a building is demolished, the carbon investment made during its original construction is essentially wasted, and new emissions are generated to replace it.
“It’s extremely hard to demolish a building and then use what you’ve taken to build a new building,” Millican explains. “It’s not really practical. So the more you can retain, the better the carbon footprint of what you’re doing.”
This perspective represents a significant departure from decades of industry practice that treated demolition and rebuilding as not only inevitable but desirable. Instead, Greycoat focuses on preserving as much of a building’s structural framework as possible while upgrading systems and aesthetics to meet modern standards.
The numbers support this approach: retrofitting an existing building emits 50-75% less carbon than constructing a new one of the same size. Refurbishment also diverts up to 90% of a building’s materials from landfills, addressing another critical environmental concern.
Regulatory Pressures Accelerating Change
London’s planning regulations are increasingly aligned with this sustainable vision. The city’s planning authorities now require substantial justification for demolition, particularly in areas like Westminster, which has taken an especially strong stance against teardowns.
“You have to really justify why you’re doing it. It is not just a case that you make a bit more money,” Millican notes, highlighting how regulatory bodies are forcing developers to defend demolition decisions based on more than financial gain.
This regulatory shift reflects a growing recognition that sustainable development through refurbishment is not only environmentally responsible but essential for reducing London’s carbon footprint. The London Plan, the city’s overarching spatial development strategy, now prioritizes the retention and refurbishment of existing buildings and mandates Whole Life Carbon assessments for major projects.
Greycoat’s approach aligns perfectly with these trends. Under Millican’s leadership, the firm treats carbon budgets with the same level of rigor and importance as financial analyses, evaluating every design decision through the lens of long-term sustainability and carbon reduction.
A Market Transforming: The Two-Tier Reality
Beyond regulatory compliance, market dynamics are creating powerful incentives for Greycoat’s sustainable approach. Millican describes an emerging “two-tier market” in commercial real estate: “There’s good buildings in desirable locations with modern environmental performance that are doing very well, and rents are actually going up. Then there are properties that aren’t really fit for purpose and are in the wrong location that probably need to be repurposed into something else.”
This bifurcation is driving a flight to quality, with tenants increasingly willing to pay premium rents for spaces that align with their environmental, social, and governance (ESG) commitments. Properties with strong environmental credentials—energy efficiency, reduced carbon footprints, and certifications like EPC ratings or BREEAM standards—are now viewed as lower-risk, future-proofed investments.
The demand for such spaces is growing rapidly. According to industry research, by 2030, the demand for low-carbon office space in London is expected to exceed supply by 35%. Over 7,600 companies have committed to science-based carbon reduction targets, with more than 80% of these commitments made in the last two years alone.
Millican recognizes this trend as both a challenge and an opportunity. By focusing on transforming older buildings into modern, sustainable spaces, Greycoat is positioning itself to meet this growing demand while contributing to London’s environmental goals.
20 Finsbury Dials: Millican’s Vision in Action
Perhaps the most striking example of Greycoat’s approach under Millican’s leadership is the 20 Finsbury Dials project. Acquired in December 2023 in partnership with Goldman Sachs Asset Management, this 140,000-square-foot office building is undergoing a comprehensive “brown to green” refurbishment.
“Our vision for DIALS goes beyond a mere property acquisition,” Millican explains. “We are embarking on a journey to transform this space into a beacon of innovation and sustainability. Our approach is not just about being at the forefront of design, but about pushing the boundaries of what is possible in sustainable development.”
The project aims to achieve BREEAM Outstanding, EPC A, and WELL Platinum ratings—certifications that signal Greycoat’s commitment to setting benchmarks in sustainable building practices that prioritize both environmental impact and occupant health.
The renovation includes improving the thermal qualities of the building’s envelope by replacing all windows and insulating the existing facade. The building will feature an expansive ground floor with a full-height atrium in the reception area, bringing natural light into the space and creating an inviting entrance for tenants and visitors.
This approach to development reflects Millican’s understanding that the office market has fundamentally changed. Post-pandemic, companies have a much clearer view of their space requirements and are actively looking for environments that will encourage employees to make the commute. “People are actively considering how to encourage employees to commute by offering attractive office spaces and additional amenities such as outdoor areas,” he notes.
Looking Ahead: Millican’s Prediction for the Future
As London continues to expand and evolve, Millican is optimistic about the growing emphasis on sustainable refurbishment. “I think we’ll see over time more and more focus on retention and refurbishment rather than demolition and rebuild,” he predicts.
This shift isn’t just about environmental responsibility—it’s about creating spaces that meet the changing needs of businesses and workers. The pandemic has accelerated trends toward flexible work arrangements, and companies now need offices that can adapt to these new patterns while providing environments that employees find worth commuting to.
Under Millican’s guidance, Greycoat has positioned itself at the forefront of this evolution, demonstrating that commercial real estate can be both sustainable and profitable. By preserving the embedded carbon in existing structures, meeting the growing demand for environmentally responsible spaces, and creating offices that enhance the urban experience, Greycoat is helping to shape a greener, more resilient future for London’s built environment.
As the commercial real estate sector continues to transform, Nick Millican’s vision of sustainable development through thoughtful refurbishment offers a blueprint for the industry—one that balances environmental responsibility with commercial success and contributes to a more sustainable urban landscape for generations to come.
