Collaborating to secure a long-term future for a landmark London asset

10 Paternoster Square is one of the most recognisable office properties in the City of London, positioned at the heart of one of the capital’s most important commercial and cultural districts, and a key London portfolio asset for Oxford Properties Group (“Oxford”), a global real estate investor and developer.

When Oxford, the building’s long-term owner, began preparing for the next chapter of its life, they were looking for an advisor to support them through a complex, high-stakes decision: whether to retain their occupier through a major renewal and refurbishment programme, or pursue an entirely new strategy for the building.

Having worked with Oxford on previous projects, in April 2023 Knight Frank was invited to take part in a competitive tender, and following a successful pitch was appointed to act as strategic advisor for the project at Paternoster Square.

Value assessment, market positioning and future proofing

The building needed meaningful upgrades to continue competing at the level expected in the City’s top-tier office market, but construction cost inflation was driving significant uncertainty - creating a moving target for the investment case.

The project required careful coordination with the occupier’s own requirements, timelines and expectations, alongside a broader strategic consideration of Oxford’s neighbouring asset, where the occupier would temporarily relocate during the refurbishment.

This was not only a lease negotiation; it was an assessment of long-term value, market positioning and futureproofing at portfolio level.

Clear, evidence-based advice was needed to answer fundamental questions, including:

• Should the tenant be retained, or should they prepare for full refurbishment and re-letting?
• What capital investment was required to reposition a 25-year-old building to best-in-class standards?
• Would refurbishment or re-leasing deliver the strongest long-term value?
• What were the commercial parameters required to make each scenario viable?

The Knight Frank London Lease Advisory team’s role was to help clarify the options, assess the financial and market implications, and ultimately support Oxford in structuring the right long-term solution.

A collaborative, multi-disciplinary advisory process

From appointment in April 2023, Knight Frank became fully integrated into Oxford’s project team. Working alongside architects Carter Gregson Gray, cost consultants and broader design and planning teams, Knight Frank led the commercial workstream across four core areas:

1. Commercial and market analysis

Scenario modelling which included refurbishment, re-letting, repositioning and disposal - helping Oxford understand the financial implications of each path. This included benchmarking comparable prime City schemes, analysing rent and incentive trends, and forecasting lease lengths achievable for various specification levels.

2. Design and positioning advisory

The building, at 25 years old, required significant upgrades to compete in a market where ESG, amenity provision and experiential workplace design are increasingly defining tenant choice.

Julian Gregson, Director at Carter Gregson Gray comments: “Working with Knight Frank allowed us to test every aspect of the design against real-time market insight. Together, we reviewed the base build enhancements needed to future-proof the structure, the amenity requirements today’s occupiers expect, and the sustainability and energy-performance upgrades required to meet modern standards.

“Knight Frank provided clear guidance on the specification levels necessary to bring a 25-year-old building in line with new developments, and worked with us to identify which design elements would genuinely differentiate the building from emerging competition. That collaboration ensured our design intent was aligned with both market expectations and commercial viability.”

3. Financial appraisals and feasibility 

As construction cost inflation created pressure on the viability of the deal, Knight Frank facilitated transparent, open-book discussions between landlord and occupier. This ensured all parties understood cost movements and allowed both sides to work towards a commercially balanced solution.

4. Minimising disruption

Working with Oxford’s wider estate, Knight Frank helped structure a temporary decant strategy into the neighbouring building - also owned by Oxford - allowing the occupier to remain fully operational while refurbishment works proceed at 10 Paternoster Square. This portfolio-wide solution was key to unlocking the deal.

A fully integrated outcome

The Knight Frank team successfully guided Oxford through a complex and fast-moving advisory process, culminating in a major transaction that secures the occupier’s long-term presence at 10 Paternoster Square.

The project now progresses into the redevelopment phase, with a comprehensive refurbishment planned to futureproof the building and reinforce its status as a flagship City location with upgraded amenities, sustainability credentials and public realm improvements, with Knight Frank remaining closely involved across advisory, design and commercial workstreams.

This is a significant outcome for all stakeholders, protecting long-term income, enabling a market-leading repositioning, and supporting the resilience and vibrancy of Paternoster Square.

Hugo Pickford, Director at Oxford Properties Group comments: “Knight Frank was instrumental in helping us evaluate our options, understand the market context, and deliver a commercial outcome that works for both landlord and occupier. Their collaborative approach and clarity of advice were invaluable throughout a complex process.”

Find out more about the strategic advice we offer on rent reviews, lease restructures and renewals, and complex leasehold disputes.