The Channel Islands office market: demand, quality and opportunity

An original version of this article was first published in the August/September issue of Business Brief, August 2026.

In September 2020, we published an article examining the potential impact of remote working on Guernsey’s office sector during the pandemic.

At the time, Guernsey was in a unique position, with no on-island restrictions, providing an early indication of what post-pandemic working life may look like. At a time when the future of the office was being widely questioned globally, we concluded that the office would remain a relevant part of working life.

Nearly six years on, that conclusion has proved to be largely correct. While working patterns have evolved, the need for physical office space remains clear. The Channel Islands office market, in particular, supports that conclusion with occupier demand, low vacancy rates and rental growth all pointing to the continuing importance of physical office space. In this article, we examine some of the factors supporting the continuing relevance of the office and consider the trends shaping occupier demand and office requirements across Jersey and Guernsey today.

The role of the physical office 

The office remains an important part of business life in Jersey and Guernsey, particularly within the financial services sector, which continues to be a key driver of both island economies. 

Many of the factors that we identified in 2020 as supporting the use of office space remain relevant today. Businesses continue to value the office environment for collaboration, mentoring junior employees, sharing knowledge and building relationships with clients and colleagues. Office space also plays an important role in fostering company culture and providing a secure and controlled environment in which to operate.

While flexible and hybrid working arrangements are now well-established, they have generally complemented rather than replaced the office as the primary place of work. 

Economic substance and regulatory requirements provide a further source of demand in Jersey and Guernsey. Businesses seeking to benefit from the Channel Islands’ legal, regulatory and tax frameworks are often required to maintain a meaningful presence within the islands, including local management and operational infrastructure where appropriate. This continues to support demand for office accommodation among financial land professional services businesses.

Demand for higher-quality space

Although overall demand for office accommodation has remained strong in the Channel Islands, occupier requirements have evolved. Increasingly, businesses are seeking higher-quality Grade A office space that supports modern ways of working.

Grade A accommodation typically offers modern specifications improved energy efficiency, enhanced amenities and a
better overall occupier experience. High-quality office space can also reinforce a business’s brand and create a strong
first impression for clients and visitors. 

Building design is another important consideration. Larger, more efficient floorplates are often better suited to collaborative working and enable businesses to bring teams together on a single floor By contrast, older office stock can be fragmented, creating operational inefficiencies and making it more difficult to accommodate modern working practices.

Across both islands, it is within the Grade A office market that supply remains most constrained. As a result, occupiers are often willing to pay a premium for well-located, high-quality accommodation. For landlords and investors, this has supported rental growth and increased the attractiveness of prime office assets as long-term investments.

Refurbishment opportunities  

Against this backdrop, landlords and investors may wish to consider the opportunities presented by existing
secondary office stock, which may be available at a more attractive price point.

Many such buildings occupy established town-centre locations but no longer meet the standards expected by modern occupiers. To remain competitive and attract tenant demand, landlords are increasingly undertaking refurbishment and upgrade projects to improve asset performance. 

This is particularly relevant given the limited supply of new office accommodation. Well-executed refurbishment projects can therefore provide an effective means of meeting occupier demands. Improvements to building specification energy efficiency credentials and workplace amenities can help older assets command higher rents and remain competitive in the longer term.

Looking ahead 

As we concluded in 2020, the office remains an important part of business operations for many organisations, albeit alongside now well-established flexible and hybrid working arrangements. 

Demand for prime accommodation remains evident, and opportunities continue to exist for landlords willing to invest in and improve existing stock. Against a backdrop of low vacancy levels and high occupier demand, the office markets in Jersey and Guernsey are well placed to continue attracting investor interest.