CONTACT US
Share: Share on Facebook Share on Twitter Share on LinkedIn I recommend visiting cushmanwakefield.com to read:%0A%0A {0} %0A%0A {1} Share on Xing
ESG Circular fit-out ESG Circular fit-out

Services

Circular Fit-Out

Rising construction costs? Make use of what is already there. Escalating construction costs have turned every fit-out project into a critical investment decision.
 

Rising construction costs? Make use of what is already there.

Escalating construction costs have turned every fit-out project into a critical investment decision. While material, fit-out, and demolition costs continue to rise, many existing buildings already contain valuable resources: doors, glazed partitions, raised access floors, lighting systems, ceilings, floor coverings, sanitary fixtures, and furniture.

The objective of circular construction is to keep these materials in productive use for as long as possible throughout their lifecycle. Buildings are no longer viewed merely as structures, but as valuable material banks and long-term assets.
For owners, investors, and occupiers, this creates new opportunities for value generation within existing properties while reducing waste, lowering resource consumption, improving ESG performance, and increasing transparency regarding installed materials.

Core Principles

Existing Assets Become Material Banks
Buildings contain significant quantities of carbon-intensive materials. These resources are too valuable and increasingly too scarce to be discarded or treated as waste. Circular fit-out approaches seek to preserve and maximize the value already embedded within existing buildings.

Sustainability Becomes Measurable
ESG requirements, EU Taxonomy regulations, sustainability certifications, and reporting obligations are increasing pressure on real estate stakeholders to not only reduce environmental impacts but also document them transparently and verifiably.

Interior Fit-Out Cycles Are Short
Office spaces are frequently refurbished, adapted, or repositioned. These recurring transformation cycles generate considerable waste streams, but they also create opportunities for material reuse, cost optimization, and ESG-aligned modernization.

Circularity Enhances Future Readiness and Marketability
Spaces designed according to circular principles are more adaptable, better documented, and better prepared for future requirements. Circular construction contributes to maintaining and enhancing the environmental, health, and economic performance of districts, buildings, construction products, and materials.

Typical Applications

A circular fit-out is particularly suitable for:

  • Office refurbishments
  • Tenant fit-outs
  • Demolition and repositioning of existing properties
  • ESG-driven modernization projects
  • Corporate headquarters projects
  • Flexible workplace concepts
  • Vacancy repositioning and activation
  • Certification projects according to DGNB, BNB, QNG, and comparable standards
  • Portfolio assessments focused on material recovery and embodied carbon reduction opportunities

Cost Comparison

Conventional vs. Circular Office Fit-Out

Project Assumptions

 Parameter   Assumption
 Area   5,000 sqm
 Use   Office (Tenant Fit-Out / Refurbishment)
 Location   Top 7 German City
 Fit-Out Standard  Mid- to High-End
 Evaluation Period  10 Years
 Refurbishment Cycles  1–2 Adaptations within 10 Years

 


 

Scenario A: Conventional Fit-Out

Assumption: Linear approach (procure new materials, install, dispose at end of life)

CAPEX (Capital Expenditure)
 Category   €/sqm  Total (€)
 Demolition & Disposal  80  400,000
 Design & Planning  120   600,000
 Material Costs (New)  550   2,750,000
 Construction & Installation  450   2,250,000
 Total CAPEX  1,200  6,000,000

 

10-Year Costs

 Category  €/sqm  Total (€)
 Maintenance & Repairs  150  750,000
 Refurbishments   (1–2x)  200 1,000,000
 End-of-Life Demolition  100   500,000
 Total Lifecycle Costs (Excl. CAPEX)  450  2,250,000

 

Total Cost (10 Years): €8,250,000

 


Scenario B: Circular Fit-Out

Assumptions

  • 25–40% reuse rate (building components, furniture, materials)
  • Selective deconstruction
  • Documented material inventory
  • Flexible construction design

 

CAPEX (Capital Expenditure)

 Category   €/sqm  Total (€)
 Existing Asset Assessment & Material Inventory  40   200,000
 Selective Deconstruction  60   300,000
 Design & Planning (Circular Approach)  150   750,000
 Material Costs (Reduced)  420   2,100,000
 Construction & Installation (Slightly Higher)  470   2,350,000
 Subtotal   1,140  5,700,000

 

Savings / Revenue

 Category   €/sqm  Total (€)
 Avoided Disposal Costs  -40  -200,000
 Reuse & Resale Revenue  -20  -100,000

 

Total CAPEX (Net): €1,080/sqm = €5,400,000

 

10-Year Costs

 Category  €/sqm  Total (€)
 Maintenance & Repairs  120   600,000
 Refurbishments (Flexible and Lower Cost)  120   600,000
 End-of-Life Deconstruction  40   200,000
 Residual Value of Components  -60  -300,000
 Total Lifecycle Costs (Excl. CAPEX)  220  1,100,000

 

Total Cost (10 Years): €6,500,000

 


Comparison

CAPEX: Up to 10% Savings Potential

 Category   Conventional   Circular   Difference
 Total (€)  6,000,000  5,400,000  -600,000 (-10%)
 €/sqm  1,200  1,080  -120 €/sqm


Total Cost of Ownership (10 Years): Approximately 20% Lower

 Category   Conventional   Circular   Difference
 Total (€)  8,250,000  6,500,000  -1,750,000 (-21%)
 €/sqm  1,650  1,300  -350 €/sqm

 

ESG Impact

Circular fit-outs not only reduce costs but also significantly lower environmental impacts:

  • 20–40% reduction in embodied carbon emissions
  • 50–80% reduction in waste generation
  • Significantly lower consumption of natural resources
  • Greater flexibility for future space adaptations

Circular fit-outs make sustainability economically tangible and measurable.

Benefits

Owners & Asset Managers

  • Increased value of existing assets
  • Lower repositioning costs
  • ESG-compliant property portfolios

Investors

  • More stable cash flows
  • Lower lifecycle costs
  • Stronger exit story

Tenants & Corporate Occupiers

  • Lower fit-out costs
  •  Flexible workspaces
  • Visible and credible sustainability performance

Our Approach

With our CircularOffice Service, you benefit from an office fit-out that is more resource-efficient, cost-conscious, and delivers measurable sustainability performance. We support you throughout the entire process:

 

  1. Opportunity Assessment: Identification of reusable materials and components.
  2. Circular Strategy: Definition of reuse targets and circular fit-out concepts.
  3. Selective Deconstruction: Preserving value rather than destroying it.
  4. Integration into Design & Construction: Commercially viable and practical implementation.
  5. Documentation & ESG Verification: Transparent, auditable, and certification-ready.

Our Circular Performance Report provides transparent, data-driven documentation of the achieved circularity performance, enabling you to communicate and promote your refurbishment project with confidence—both internally and externally.

 

The report includes, among other things: 

  • Share of secondary and primary materials used
  • Reuse and waste prevention rate
  • Share of low-toxicity, low-emission, certified, and recycling-friendly building materials and products
  • Avoided embodied carbon emissions
  • Share of the original building structure retained
  • Share of building components and materials with take-back options
  • Cost comparison: Standard Fit-Out vs. Circular Fit-Out

These KPIs can be directly incorporated into your CSRD disclosures under ESRS E1, E2 and E5, as well as EU Taxonomy reporting requirements related to circular economy objectives and DNSH compliance.

By providing transparent and verifiable data, the report helps you meet sustainability reporting obligations, demonstrate regulatory compliance, and communicate your environmental performance effectively to investors, tenants, employees, and other stakeholders.

 

Contact

Martin Wellnitz Germany
Martin Wellnitz

Head of Project & Development Services DACH • 60311 Frankfurt am Main

CAN'T FIND WHAT YOU'RE LOOKING FOR?

Get in touch with one of our professionals.
With your permission we and our partners would like to use cookies in order to access and record information and process personal data, such as unique identifiers and standard information sent by a device to ensure our website performs as expected, to develop and improve our products, and for advertising and insight purposes.

Alternatively click on More Options and select your preferences before providing or refusing consent. Some processing of your personal data may not require your consent, but you have a right to object to such processing.

You can change your preferences at any time by returning to this site or clicking on Cookies.
MORE OPTIONS
AGREE AND CLOSE
These cookies ensure that our website performs as expected, for example website traffic load is balanced across our servers to prevent our website from crashing during particularly high usage.
These cookies allow our website to remember choices you make (such as your user name, language or the region you are in) and provide enhanced features. These cookies do not gather any information about you that could be used for advertising or remember where you have been on the internet.
These cookies allow us to work with our marketing partners to understand which ads or links you have clicked on before arriving on our website or to help us make our advertising more relevant to you.
Agree All
Reject All
SAVE SETTINGS